Cross Border Interstate Charging was introduced in the 1993/94 financial year as part of the Medicare Agreement 1993/98. Under the terms of the Medicare Agreement, all States and Territories are required to meet the cost of public and private inpatient services provided to their residents in a public hospital setting in another State or Territory.
The commencement of Cross Border Interstate Charging for acute inpatient services represents the first introduction of Casemix charging on a national basis.