11. Eligibility for subsidy to be paid on behalf of medical practitioners

(1) Subject to this Scheme, a medical practitioner who:

(a) is an eligible member; and

(b) complies with the conditions in section 13,

is eligible for a premium period for a subsidy to be paid to a contractor on his or her behalf in accordance with this Scheme.

(2) For the avoidance of doubt, an eligible member is not eligible to be paid a subsidy:

(a) directly; or

(b) at any time when a PSS contract with a contractor to which the member owes a premium is not in force, other than where there are accrued liabilities for payment under a PSS contract which continue after termination or expiry of the PSS contract; or

(a) where the contractor has not complied with the conditions set out in this Scheme or the PSS contract for the payment of subsidy on behalf of a member.

(3) If for a premium period:

(a) a subsidy has been paid under this Scheme to a contractor on behalf of an eligible member; or

(b) a liability to pay a medical indemnity insurer or MDO a subsidy on behalf of an eligible member has arisen under a terminated or expired PSS contract,

the member is not eligible to have a subsidy paid on his or her behalf to another contractor in respect of the same period unless the contractor has repaid, or caused to repay, the amount of the subsidy to the Chief Executive Medicare.

Note The eligible member must repay to the first contractor the amount the contractor had to repay to the Chief Executive Medicare – see section 51.

(5) If a subsidy has been paid to a contractor on behalf of a member for a premium period and the member has not paid to the contractor, on demand of the contractor, the full amount of any subsidy paid to the contractor which the contractor is required to repay to the Chief Executive Medicare under this Scheme, the member ceases to be eligible for a subsidy to be paid on his or her behalf for the whole of that premium period and any further premium period until the member has repaid to the contractor the outstanding amount.

Note The medical practitioner may be required to repay the contractor in accordance with section 51.

(6) If a member has received a payment under the MISS (whether received before or after the repeal of the MISS) which relates to medical indemnity cover for any period on or after 1 January 2004, the member is not eligible to be paid a subsidy under this Scheme for the same period of the medical indemnity cover otherwise than in accordance with section 20.