Private Health Insurance (Complying Product) Amendment Rules 2008 (No. 3)

Administered by Department of Health, Disability and Ageing

Legislation au F2008L04578 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 (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

 

Overview

The Private Health Insurance (Complying Product) Amendment Rules 2008 (No. 3) were introduced to address specific transitional arrangements within the private health insurance sector, particularly concerning the classification and coverage of dependent child non-students. Enacted under the authority of the Private Health Insurance Act 2007, these rules were designed to offer continuity in policy offerings for dependent child non-students by extending the deadline for certain coverage conditions. The policy objective behind these amendments was to provide insurers with additional time to adjust their policies to comply with the evolving regulatory framework, ensuring that consumers could maintain their existing coverage without abrupt changes. Developed and issued by the Minister for Health and Ageing, these rules reflect a commitment to facilitating a smooth transition in the private health insurance market. By extending deadlines and adjusting definitions, the Amending Rules aim to balance the need for regulatory compliance with the practical considerations of insurers and their clients. This approach underscores the government's intention to support the private health insurance industry while ensuring that consumers' needs are met in a stable and predictable manner.

Scope and Application

The Private Health Insurance (Complying Product) Amendment Rules 2008 (No. 3) apply to the rules governing the composition and definition of insured groups for certain private health insurance policies, specifically those covering dependent child non-students. These rules are instrumental in determining the eligibility criteria and coverage for individuals aged between 18 and 24 who do not receive full-time education at a school, college, or university. The Amending Rules extend the eligibility period for dependent child non-students from 31 December 2008 to 31 December 2009, thereby allowing private health insurers to continue offering such policies. This amendment ensures that a new cohort of individuals born in 1992 can qualify for dependent child non-student coverage when they turn 18, aligning the eligibility criteria with the changing age demographics. The rules are applicable across Australia, as they amend the Private Health Insurance (Complying Product) Rules 2008 (No. 2), which were established under the Commonwealth jurisdiction of the Private Health Insurance Act 2007.

Key Provisions

The Private Health Insurance (Complying Product) Amendment Rules 2008 (No. 3) introduce specific amendments to the Private Health Insurance (Complying Product) Rules 2008 (No. 2). Rule 5, for example, specifies the insured groups relevant to paragraph 63-5(2A)(b) of the Act, while paragraph 5(1)(c) of the Rules identifies the insured group for policies covering dependent child non-students before 31 December 2008, under conditions that the non-student is not covered for general treatment, other than hospital-substitute treatment, and must have their own policy with the same insurer covering general treatment. The Amending Rules extend the date from 31 December 2008 to 31 December 2009 for this insured group, thereby allowing private health insurers to continue offering such policies. These rules impose obligations on private health insurers to ensure that they adhere to the new timelines and criteria set forth in the Amending Rules. Insurers must adjust their policies to comply with the extended dates and updated definitions for insured groups and non-student policies. They are also required to provide clear information to their policyholders about these changes, ensuring that dependent child non-students and their families are aware of the updated conditions and deadlines. Breaching these rules can lead to significant consequences for private health insurers. While the explanatory statement does not specify the exact penalties, breaches of the Private Health Insurance Act 2007 can generally result in both civil and criminal penalties. Civil penalties may include fines up to $111,000 for individuals and $555,000 for bodies corporate, as per section 333-20 of the Act. Criminal penalties can include imprisonment for up to five years, reflecting the serious nature of non-compliance with the Act's provisions. Ensuring adherence to these rules is thus crucial for maintaining the integrity and functionality of the private health insurance system in Australia.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.