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. 4)
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 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. 4) (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 amend subparagraph 8A(3)(a)(i) of the Principal Rules by changing the daily NHTP contribution rate at public hospitals in the Australian Capital Territory to $49.20.
This change was requested by ACT Health on 6 May 2011 to reflect the new ACT public hospital fees to apply from 1 July 2011.
The amendment brings the ACT NHTP contribution rate in line with the NHTP contribution rates of New South Wales, Queensland, Western Australia, South Australia, Tasmania and Victoria. The NHTP patient contribution rates for these States were set, at their request, in the Principal Rules and took effect on 20 March 2011, except for Western Australia which took effect on 5 May 2011 following a request from Western Australia on 13 April 2011. The ACT NHTP contribution rate is also now the same as the NHTP contribution rate for patients in private hospitals.
Changes to the NHTP contribution rate reflect increases in the Adult Pension Basic Rate and the maximum daily rate of rental assistance.
Details of the Amendment Rules are set out in the Attachment.
Consultation
On 28 February 2011, the Commonwealth Department of Health and Ageing (DoHA) advised States and Territories of its intention to increase the NHTP patient contribution rates for private patients in private hospitals. New South Wales, Queensland, South Australia, Tasmania and Victoria advised of their intention to increase their NHTP patient contribution rates and sought the Commonwealth to adjust paragraph 8A of the Complying Product Rules accordingly. The adjusted NHTP rates for these States took effect on 20 March 2011. Western Australia confirmed an increase in their NHTP rate on 13 April 2011. The adjusted NHTP rate for Western Australia took effect on 5 May 2011.
On 1 March 2011, ACT Health advised DoHA that it anticipated that the flow-on effect from the increase in pension rates would be incorporated in the annual review of fees in the ACT, effective each year on 1 July. ACT Health wrote to DoHA on 6 May 2011 advising of the new fees to apply for ACT NHTPs, effective from 1 July 2011.
The Amendment Rules commence on 1 July 2011 or, if registered after 1 July 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. 4)
- Name of Rules
Rule 1 provides that the title of the Rules is the Private Health Insurance (Complying Product) Amendment Rules 2011 (No.4) (the Amendment Rules).
2. Commencement
Rule 2 provides that the Amendment Rules are to commence on 1 July 2011 or, if registered after 1 July 2011, 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)(i) of the Principal Rules by increasing the NHTP contribution at public hospitals in the ACT from $47.35 to $49.20.
PRIVATE HEALTH INSURANCE BRANCH
DEPARTMENT OF HEALTH AND AGEING
JUNE 2011