The Health Insurance Commission was created by the Health Insurance Commission Act 1973 (No 41 of 1974) on 8 August 1974 (Australian Government Gazette No 68 of 20 August 1974 p 2).
 
The first chairman of the Commission was Dr R B Scotton, and the first Deputy-Chairman was Dr J S Deeble. Mr R G Williams was appointed the first General Manager and all three appointments were made on 22 September 1974. The Commission consists of seven Commissioners, a Chairman, Deputy-Chairman, General Manager, 
a Commissioner nominated by the Director-General, and three 
other Commissioners.

Functions

The Commission is responsible for the planning, establishment and administration of the organisation that implements the scheme described in Parliamentary Paper No 248 entitled 'The Australian Health Insurance Program'. The paper was tabled by Mr W G Hayden, the Minister of State for Social Security on 8 November 1973 and confirmed by the Australian Health Insurance Act 1973 passed 8 August 1974 (Australian Gazette No 68 of 20 August 1974 p 2). 
The Commission is required to administer the health insurance scheme according to the powers conferred upon it under this Act.
The Commission is to be financed by moneys appropriated by the Parliament and cannot undertake any liabilities other than those directly related to the implementation of the Scheme.

In the Administrative Arrangements order of 16 December 2004 the agency was moved to the new Department of Human Services.

Background

There had been discussion over some years regarding the adequacy and effectiveness of the health insurance facilities in Australia. 
In this connection, a Committee of Inquiry into Health Insurance was appointed, Mr Justice Nimmo presiding as Chairman. The subsequent report, completed in 1967, was the result of extensive research into the existing voluntary health insurance schemes. The report revealed several deficiencies, including lack of cover for poorer groups in the community, and insufficient cover for members of the private funds. Measures were suggested to ameliorate the situation,
consisting mainly of financial government support in specific areas.

The new Labor Government commissioned a Health Insurance Planning Committee on 22 December 1972 to provide detailed recommendations on a compulsory health insurance scheme, which would facilitate comprehensive health insurance on a national basis. This report, presented 1 May 1973, enabled the Federal Cabinet to propose the establishment of a Health Insurance Commission which would administer a national health fund. 

In June 1973, an Interim Executive of the Australian Health Insurance Commission was appointed to plan the proposed national health insurance scheme. The members were Dr R Scotton, Dr J Deeble, Mr R Williams and Mr D Corrigan. The interim executive continued to operate until the establishment of the Health Insurance Commission. The Cabinet subsequently proposed a White Paper on the health insurance scheme on 29 September. As a result of parliamentary opposition, modifications were suggested by Mr Hayden, namely to allow private health insurance to be retained on a reduced level, and the withdrawal of proposals to control private hospital charges. These modifications were reflected in Parliamentary Paper No 248 entitled 'The Australian Health Insurance Program'. The original
program was consequently altered so that the scheme now became one of 'a range of ways in which medical services (would be) provided for the community'.

On 29 November 1973, the Health Insurance Bill and the Health Insurance Commission Bill, were introduced to the House of
Representatives and passed on 11 December, but rejected the following day by the Senate. Both Bills were re-introduced on 18 July 1974 after the election of May 1974 and were again rejected in the Senate. 
As a result a joint sitting of Federal Parliament was summoned, the Health Insurance Commission Bill was finally enacted 8 August 1974. 

Although the health insurance scheme did not become operational until 1 July 1975, the Commission was functioning officially from 8 August 1974.

Legislation was enacted on 1 December 1997 which began the process of formally separating Medibank Private from the Health Insurance Commission. By 1 May 1998, the process was completed with the new agency knwon as Medibank Private Limited (CA 8513).

This agency was abolished on 1 September 2005.

Historical agency address
1984-1988: Albemarle Building, Furzer Street, Phillip ACT
1989-    : 134 Reed Street, Tuggeranong ACT
Legislation administered
Commonwealth of Australia Act No. 41 of 1974, Health Insurance Commission Act 1973

Previous agency unregistered

Interim Executive to Health Insurance Commission, 1973-1974