Private Health Insurance (Benefit Requirements) Amendment Rules 2009 (No. 5)

Administered by Department of Health, Disability and Ageing

Legislation au F2009L03599 Rules Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

 

Issued by the Authority of the Minister for Health and Ageing

 

Private Health Insurance Act 2007

 

Private Health Insurance (Benefit Requirements) Amendment Rules 2009 (No. 5)

 

Section 333-20 of the Private Health Insurance Act 2007 (the Act) provides that the Minister may make Private Health Insurance (Benefit Requirements) Rules providing for matters required or permitted by Part 3-3 of the Act, or necessary or convenient to be provided in order to carry out or give effect to Part 3-3 of the Act.

 

The Private Health Insurance (Benefit Requirements) Rules 2009 (No. 2) (the Rules) (as amended), which commenced on 30 July 2009, provide for the minimum benefit requirements for psychiatric, rehabilitation and palliative care and other hospital treatment. Schedules 1 to 5 of the Rules set out the minimum levels of benefit which are payable for hospital treatment. Namely, benefits for overnight accommodation (Schedules 1 and 2), same day accommodation (Schedule 3), nursing-home type patients (Schedule 4) and second tier default benefits (Schedule 5).

 

The Private Health Insurance (Benefit Requirements) Amendment Rules 2009 (No. 5) (the Amendment Rules) amend Schedule 4 and 5 of the Rules. 

 

The purpose of the amendments to Schedule 4 of the Rules is to reflect the changes in the minimum benefits for hospital treatment for patients who are classified as “nursing-home type patients” at public hospitals in certain States/Territories and at private hospitals nationally to reflect the indexation applied to Adult Pension Basic Rate and the maximum daily rate of rental assistance that will be effective from 20 September 2009. 

 

The purpose of the amendments to Schedule 5 of the Rules is to ensure that 17 new facilities are eligible for second tier default benefits.  The insertion of 17 facilities into the table at clause 4 of Schedule 5 of the Rules increases the table from 287 facilities to 304 facilities. 

 

Details of the Amendment Rules are set out in the Attachment.

 

Consultation

 

Department of Health and Families (NT), Queensland Health (QLD), Department of Health (SA), Department of Health and Human Services (TAS), Department of Health (VIC) and Department of Health (WA) were consulted with respect to increasing the minimum benefit for their jurisdictions in the circumstances described in Schedule 4 of the Rules.  No objections were made.

 

Consultation for changes to Schedule 5 of the Rules occurred with industry through the Second Tier Advisory Committee, which includes equal representation from both the private hospital and private health insurance sectors.

 

 

PRIVATE HEALTH INSURANCE BRANCH

DEPARTMENT OF HEALTH AND AGEING

SEPTEMBER 2009

ATTACHMENT

 

DETAILS OF THE PRIVATE HEALTH INSURANCE (BENEFIT REQUIREMENTS) AMENDMENT RULES 2009 (No. 5)

 

1. Name of Rules

 

Rule 1 provides that the title of the Rules is the Private Health Insurance (Benefit Requirements) Amendment Rules 2009 (No. 5) (the Amendment Rules).

 

2. Commencement

 

Rule 2 provides that the Amendment Rules are to commence on 20 September 2009 or, if registered on a later date, the day after registration.

 

3.              Amendment of Private Health Insurance (Benefit Requirements) Rules 2009 (No. 2)

 

Rule 3 provides that the Schedule to the Amendment Rules amends the Rules which commenced on 30 July 2009 and which were amended on 28 August 2009.

 

Schedule – Amendments

Item 1 – Schedule 4, Clause 6 Minimum benefit, Table 1

 

Schedule 4 of the Rules set out the minimum benefit payable per night for patients that are classified as Nursing Home Type Patients in hospitals.  

 

Item 3 of the Schedule to the Amendment Rules increases the minimum benefit per night for public hospitals in the following States and Territories in clause 6, Table 1:

 

  • Northern Territory From: $60.72 to $67.72
  • Queensland  From: $92.00 to $96.00
  • South Australia  From: $97.50 to $100.00
  • Tasmania   From: $99.25 to $109.20
  • Victoria    From: $99.15 to $101.65 and
  • Western Australia From: $99.30 to $101.65

 

Item 4 – Schedule 4, Clause 6 Minimum benefit, Table 2

 

Schedule 4 of the Rules set out the minimum benefit payable per night for patients that are classified as Nursing Home Type Patients in hospitals.

 

Item 4 of the Schedule to the Amendment Rules decreases the minimum benefit per night for private hospitals in clause 6, Table 2:

 

  • Private hospitals  From: $69.75 to $65.60.

 

Item 5 – Schedule 5, Clause 4 Facilities, Table

 

Schedule 5 of the Rules requires a health insurer to pay second tier default benefits for most episodes of hospital treatment provided in private hospital facilities that are specified in Schedule 5 if the health insurer does not have a negotiated agreement with the hospital. Schedule 5 sets a higher minimum level of benefit (for overnight treatment and day only

 

 

treatment provided in specified facilities) than the minimum benefit set for such treatment by Schedules 1, 2 and 3 of the Rules. 

 

Item 5 of the Schedule to the Amendment Rules amends clause 4 of Schedule 5 of the Rules to specify that 17 new facilities are entitled to second tier default benefits.  

 

The new facilities are:

 

1.

Adelaide Day Surgery

18 North Terrace, ADELAIDE SA 5000

2.

Bankstown Primary Health Care Day Surgery

67 Rickard Road, BANKSTOWN NSW 2200

3.

Bondi Junction Private Hospital

Level 1, 21 Spring Street, BONDI JUNCTION NSW 2022

4.

Eastern Suburbs Private Hospital

8 Chapel Street, RANDWICK NSW 2031

5.

Harley Place Day Surgery

Suite 605, Harley Place, 251 Oxford Street, BONDI JUNCTION NSW 2022

6.

Holy Spirit Northside

627 Rode Road, CHERMSIDE QLD 4032

7.

Hopewell Hospice

11 Dunkirk Close, ARUNDEL QLD 4214

8.

Manly Waters Private Hospital

17 Cove Avenue, MANLY NSW 2095

9.

Marie Stopes International - Canberra

Level 1, Cnr Moore & Alinga Streets, CANBERRA CITY ACT 2601

10.

Marie Stopes International – Westmead

27 Railway Parade, WESTMEAD NSW 2145

11.

Minchinbury Community Private Hospital

Rupertswood Road, MOUNT DRUITT NSW 2770

12.

Oxford Day Surgery & Dermatology

416-418 Oxford Street, MOUNT HAWTHORN  WA  6016

13.

Pennant Hills Day Endoscopy Centre

10 Ramsay Road, PENNANT HILLS NSW 2120

14.

Southern Respiratory & Sleep Disorders Centre

Level 2, Sutherland Hospital, The Kingsway, CARINGBAH NSW 2229

15.

Sydney Day Surgery

213-219 Darlinghurst Road, DARLINGHURST NSW 2010

16.

Western Plains Day Surgery

62 Windsor Parade, DUBBO NSW 2830

17.

Western Private Hospital

1-9 Marion Street, FOOTSCRAY  VIC 3011

 

As a result of these insertions, the table has increased from 287 facilities to 304 facilities.

 

 

PRIVATE HEALTH INSURANCE BRANCH

DEPARTMENT OF HEALTH AND AGEING

SEPTEMBER 2009

 

 

Overview

The Private Health Insurance (Benefit Requirements) Amendment Rules 2009 (No. 5) were introduced to amend the Private Health Insurance (Benefit Requirements) Rules 2009 (No. 2) to address changes in the minimum benefits for hospital treatment for patients classified as "nursing-home type patients" and to include 17 new facilities eligible for second tier default benefits. The rules were enacted by the Minister for Health and Ageing under the authority of the Private Health Insurance Act 2007. The policy objective of these amendments is to ensure that the private health insurance system provides adequate coverage and benefits in line with the evolving healthcare needs and cost structures, particularly for vulnerable patient groups and newly recognised healthcare facilities. The amendments to Schedule 4 adjust the minimum benefit rates for "nursing-home type patients" in public hospitals across certain states and territories to reflect changes in the Adult Pension Basic Rate and the maximum daily rate of rental assistance. This adjustment aims to ensure that the financial support provided to these patients through private health insurance remains appropriate and current. Additionally, the amendments to Schedule 5 incorporate 17 new facilities into the list eligible for second tier default benefits, thereby expanding the range of hospitals covered under this scheme and potentially improving access to higher benefit levels for patients treated in these facilities.

Scope and Application

The Private Health Insurance (Benefit Requirements) Amendment Rules 2009 (No. 5) amends the Private Health Insurance (Benefit Requirements) Rules 2009 (No. 2) to adjust the minimum benefit levels for hospital treatment, particularly for patients classified as "nursing-home type patients" in both public and private hospitals. These amendments reflect changes in the minimum benefits for certain states and territories in Australia, indexed to the Adult Pension Basic Rate and the maximum daily rate of rental assistance effective from 20 September 2009. Furthermore, the amendment introduces 17 new facilities eligible for second tier default benefits, bringing the total number of facilities to 304. The rules apply to health insurers and private hospitals across Australia, with specific amendments targeting public hospitals in the Northern Territory, Queensland, South Australia, Tasmania, Victoria, and Western Australia, as well as private hospitals nationally. No objections were raised from the consulted state and territory health departments regarding the increased benefits, and industry consultation through the Second Tier Advisory Committee was conducted with no objections to the changes in the second tier benefits. The amendments are made under the authority of the Private Health Insurance Act 2007 and are effective from 20 September 2009.

Key Provisions

The Private Health Insurance (Benefit Requirements) Amendment Rules 2009 (No. 5) make amendments to the Private Health Insurance (Benefit Requirements) Rules 2009 (No. 2), which set out minimum benefit requirements for various hospital treatments. Specifically, the Amendment Rules revise the minimum benefits for "nursing-home type patients" in public hospitals and adjust the list of facilities eligible for second tier default benefits. Under Schedule 4, the minimum benefit per night for nursing-home type patients in certain public hospitals is increased to reflect changes in the Adult Pension Basic Rate and the maximum daily rate of rental assistance. This amendment applies to hospitals in the Northern Territory, Queensland, South Australia, Tasmania, Victoria, and Western Australia, but reduces benefits for private hospitals. Schedule 5 adds 17 new facilities to the list of those eligible for second tier default benefits, bringing the total number of facilities from 287 to 304. The Amendment Rules impose obligations on health insurers to adhere to the updated minimum benefits for nursing-home type patients and to recognize the 17 new facilities for second tier default benefits. Health insurers must ensure that they are providing the correct levels of benefits as outlined in the amended schedules, particularly for overnight and day-only treatments. These obligations are critical to ensure compliance with the updated benefit requirements and to maintain the integrity of the private health insurance system in Australia. Failure to comply with the provisions of the Amendment Rules may result in legal consequences. While the Explanatory Statement does not explicitly mention penalties, non-compliance with the Private Health Insurance Act 2007 generally can lead to financial penalties. For example, under section 136 of the Act, a health insurer may be fined up to $11,000 for failing to meet the minimum benefit requirements. Additionally, ongoing non-compliance could lead to more severe penalties, including potential criminal charges for officers of the corporation under section 138 of the Act. It is essential for health insurers to stay updated with these amendments to avoid any legal repercussions.

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