To: The Chief Executive of the Department of Work and Income.
Pursuant to section 5 of the Social Security Act 1964, the Minister of Social Services and Employment makes the following Amendment to the direction given on 28 April 1999 on disability allowance.
Dated at Wellington this 27th of June 2001.
STEVE MAHAREY, Minister of Social Services and Employment.
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A m e n d m e n t
1. Title-(1) This is the Ministerial Direction-Disability Allowance Amendment 2001.
(2) In this Amendment, the Ministerial Direction-Disability Allowance is called "the direction".
2. Commencement-This Amendment comes into effect on 1 July 2001.
3. Interpretation-(1) Clause 1 of the direction is amended by inserting, after the definition of the term Act, the following definitions:
"approved alarm company means a supplier of medical alarm services for the time being approved for the purposes of this direction.
medical alarm means a communication system that alerts a central monitoring station that a person with a medical condition requires assistance.
medical alarm services means services relating to the supply, rental, servicing, and monitoring of medical alarms."
(2) Clause 1 of the direction is amended by omitting from the definition of the term subsidised the words "met by a Purchaser" and substituting the words "funded under the New Zealand Public Health and Disability Act 2000".
4. Clause 4 amended-Clause 4 of the direction is amended by inserting, after paragraph (a), the following paragraph:
"(aa) the extent (if any) to which the person's life or health would be put at risk, or the person's disability aggravated, if the person could not receive the goods or services because the expense was not wholly or partly met from a disability allowance; and"
5. Clause 5 amended-Clause 5 of the direction is amended by omitting from paragraph (b) the words "Health Funding Authority, Health Benefits Limited, or other appropriate agency" and substituting the words "appropriate District Health Board or other agency under the
New Zealand Public Health and Disability Act 2000".
6. New clause 5A inserted-The direction is amended by inserting, after clause 5, the following clause:
"5A When determining whether, and to what extent, the cost of medical alarm services is an additional expense of a kind required by section 69C (2A) (a) of the Act, you must have regard to the matters in clause 4 and the following additional matters-
(a) whether the services are supplied by an approved alarm company; and
(b) if not, whether the nature of the services is the supply of medical alarm services or security alarm services."
7. Clause 7 amended-Clause 7 of the direction is amended by omitting the word "an" and substituting the word "a".
8. New heading and clauses added-The direction is amended by adding the following heading and clauses:
"Approval of alarm companies
8 You are to establish, as soon as practicable after the commencement of this clause, processes for-
(a) approving, on application, suppliers of medical alarm services for the purposes of this direction:
(b) reviewing approvals under paragraph (a):
(c) revoking approvals under that paragraph.
9 The processes referred to in clause 8 must be based on-
(a) the integrity of the supplier as a supplier of medical alarm services rather than security alarm services; and
(b) the cost effectiveness, efficiency, and responsiveness of the medical alarm services offered by the supplier; and
(c) any other matters you consider relevant."
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Explanatory Note:
This note is not part of the Amendment, but is intended to explain its general effect.
This Amendment to the Ministerial direction on disability allowance relates to medical alarms. The Amendment requires the Department of Work and Income to establish processes for the approval of suppliers of medical alarm services, and sets criteria for the assessment of whether, and to what extent, the cost of such services is an additional cost for the purposes of eligibility for disability allowance.
Other amendments made to the direction correct a drafting error or are consequential on changes in the health sector.