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 2011 (No. 2)
Section 333-20 of the Private Health Insurance Act 2007 (the Act) provides that the Minister may make Private Health Insurance (Complying Product) Rules providing for matters required or permitted by Chapter 3 and/or section 188-1 of the Act, or necessary or convenient in order to carry out or give effect to the Act.
The Private Health Insurance (Complying Product) Amendment Rules 2011 (No. 2) (the Amendment Rules) amend the Private Health Insurance (Complying Product) Rules 2010 (No. 2) (the Principal Rules) which commenced on 14 January 2011.
The purpose of Rule 8A is to enforce the patient contribution for privately insured
nursing-home type patients (NHTP) by restricting the amount of benefit that private health insurers pay for each day of NHTP hospital treatment at a hospital. The amount of benefit is restricted to the hospital’s charge less the patient contribution amount.
The Amendment Rules make minor changes to paragraph 8A(3)(a) of the Principal Rules by amending the NHTP contribution rate at public hospitals in New South Wales, Queensland, South Australia, Tasmania and Victoria. The Amendment Rules also make changes to paragraph 8A(3)(b) of the Principal Rules by amending the NHTP contribution rate at private hospitals nationally.
Changes to the NHTP contribution rate reflect increases in the Adult Pension Basic Rate and the maximum daily rate of rental assistance, which become effective on 20 March 2011.
Details of the Amendment Rules are set out in the Attachment.
Consultation
The NSW Department of Health (NSW), Queensland Health (QLD), Department of Health (SA), Department of Health and Human Services (TAS) and Victorian Department of Human Services (VIC) were consulted with regard to increasing the NHTP contribution rate in their jurisdictions. No objections were made.
No specific consultation was undertaken in relation to the amendment to paragraph 8A(3)(b) of the Principal Rules regarding private hospitals because the change was machinery in nature and linked to the bi-annual pension increase. The change did not substantially alter existing arrangements.
The Amendment Rules commence on 20 March 2011 or, if registered after 20 March 2011, the day after registration.
The Amendment Rules are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Authority: Section 333-20 of the
Private Health Insurance Act 2007
ATTACHMENT
DETAILS OF THE PRIVATE HEALTH INSURANCE (COMPLYING PRODUCT) AMENDMENT RULES 2011 (No. 2)
- Name of Rules
Rule 1 provides that the title of the Rules is the Private Health Insurance (Complying Product) Amendment Rules 2011 (No. 2) (the Amendment Rules).
2. Commencement
Rule 2 provides that the Amendment Rules are to commence on 20 March 2011, or if registered on a later date, the day after registration.
3. Amendment of Private Health Insurance (Complying Product) Rules 2010 (No. 2)
Rule 3 provides that the Schedule to the Amendment Rules amends the Private Health Insurance (Complying Product) Rules 2010 (No. 2) (the Principal Rules) which commenced on 14 January 2011.
Schedule – Amendments
Item 1 – Part 2, Paragraph 8A(3)(a)
Paragraph 8A(3)(a) of the Principal Rules set out the patient contribution for privately insured NHTPs at public hospitals.
Item 1 of the Schedule of the Amendment Rules amends Part 2 subparagraph 8A(3)(a)(ii) of the Principal Rules by increasing the NHTP contribution at public hospitals in New South Wales from $48.35 to $49.20. Item 1 further amends Part 2 subparagraph 8A(3)(a)(iv) to subparagraph 8A(3)(a)(vii) of the Principal Rules by increasing the NHTP contribution at public hospitals in Queensland, South Australia, Tasmania and Victoria from $48.35 to $49.20.
Item 2 – Part 2, Paragraph 8A(3)(b)
Paragraph 8A(3)(b) of the Principal Rules set out the patient contribution for privately insured NHTPs at private hospitals.
Item 2 of the Schedule of the Amendment Rules amends Part 2 subparagraph 8A(3)(b) of the Principal Rules by increasing the NHTP contribution at private hospitals from $48.35 to $49.20.
PRIVATE HEALTH INSURANCE BRANCH
DEPARTMENT OF HEALTH AND AGEING
MARCH 2011