EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Health and Ageing
Private Health Insurance Act 2007
Private Health Insurance (Complying Product) Amendment Rules 2008 (No.3)
Section 333-20 of the Private Health Insurance Act 2007 (the Act) provides that the Minister may make Private Health Insurance (Complying Product) Rules (the Rules) providing for matters required or permitted by Chapter 3 of the Act to be provided; or necessary or convenient to be provided in order to carry out or give effect to the Act.
The Private Health Insurance (Complying Product) Amendment Rules 2008 (No. 3) (the Amending Rules) commence on the day following their registration on the Federal Register of Legislative Instruments. The Amending Rules amend the Private Health Insurance (Complying Product) Rules 2008 (No.2), which commenced on 1 July 2008 and were subsequently amended by the Private Health Insurance (Complying Product) Amendment Rules 2008 (No. 2) as of 20 September 2008.
Rule 5 of the Rules specifies the insured groups for the purpose of paragraph 63-5(2A)(b) of the Act. Paragraph 5(1)(c) of the Rules specifies the insured group for policies that before 31 December 2008 cover a dependent child non-student (non-student) which have as conditions of the policy that the non-student is not covered for general treatment, other than hospital-substitute treatment, and must have his or her own policy with the same insurer covering general treatment (other than hospital-substitute treatment).
The Amending Rules extends the date from 31 December 2008 to 31 December 2009 for that insured group. This permits private health insurers to continue offering policies with respect to non-students.
Details of the Amending Rules are set out in the Attachment.
The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required.
Consultation
The Department of Health and Ageing consulted with the private health insurance industry and the Private Health Insurance Administration Council on changes to insured groups including dependent child non-students, in 2007. This included releasing Exposure Drafts in October and November 2007. For the Amending Rules, the Department has received written and oral representations from private health insurers indicating that it is desirable for them to be able to continue to offer this type of cover.
MINISTER FOR HEALTH AND AGEING
NOVEMBER 2008
ATTACHMENT
DETAILS OF THE PRIVATE HEALTH INSURANCE (COMPLYING PRODUCT) AMENDMENT RULES 2008 (No. 3)
1. Name of Rules
Rule 1 provides that the title of the Rules is the Private Health Insurance (Complying Product) Amendment Rules 2008 (No. 3) (the Amending Rules).
2. Commencement
Rule 2 provides that the Amending Rules commence on the day after they are registered on the Federal Register of Legislative Instruments.
3. Amendment of the Private Health Insurance (Complying Product) Rules 2008 (No. 2)
Rule 3 provides that the Schedule to the Amending Rules amends the Private Health Insurance (Complying Product) Rules 2008 (No. 2) (the Rules).
Schedule – Amendments
Item 1 – Part 2, Paragraph 5(1)(c)
Paragraph 5(1)(c) of the Rules sets out the composition of insured groups for policies that before 31 December 2008 covered a dependent child non-student but require the dependent child non-student to have his or her own policy with the insurer for general treatment (other than hospital-substitute treatment).
Item 1 of the Amending Rules amends paragraph 5(1)(c) of the Rules by extending the date from 31 December 2008 to 31 December 2009.
Item 2 – Part 2, Subrule 5(2) Definition of “dependent child non-student”,
Paragraph 5(2) of the Rules defines the term dependent child non-student as being a person who is aged between 18 and 24, was born before 1991, is a dependent child under the rules of the insurer that insures the person, does not have a partner, is not receiving full-time education at a school, college or university.
Item 2 of the Amending Rules amends paragraph 5(2) of the Rules by changing 1991 to 1992. This change will ensure that a new year of people can enter the category of dependent child non-student when they become 18.
Item 3 – Part 2, Subrule 5(2) Definition of “non-student policy”
Subrule 5(2) of the Rules also defines the term non-student policy as a health insurance policy that is issued before 31 December 2008 and at any time before 31 December 2008 covers one or more dependent child non-student. The premium for the policy is:
(i) less than the amount worked out under paragraph (3)(a); and
(ii) more than the amount worked out under paragraph (3)(b).
Item 3 of the Amending Rules extends the definition from 31 December 2008 to 31 December 2009.
MINISTER FOR HEALTH AND AGEING
NOVEMBER 2008