EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Health
Private Health Insurance Act 2007
Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 3)
Authority
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 2012 (No. 3) (the Amendment Rules) amend Rule 8A of the Private Health Insurance (Complying Product) Rules 2010 (No. 2) (the Principal Rules) which commenced on 14 January 2011.
Purpose
The purpose of the amendment to Rule 8A is to change the patient contribution payable per night for nursing-home type patients (NHTPs) at public hospitals in Western Australia.
Background
Rule 8A of the Principal Rules sets the patient contribution for privately insured NHTPs 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 a minor change to subparagraph 8A(3)(a) (viii) of the Principal Rules by amending the NHTP contribution rate at public hospitals in Western Australia.
Changes to the NHTP contribution rate reflect increases in the Adult Pension Basic Rate (Pension Rate) and the Maximum Daily Rate of Rental Assistance (Rental Assistance Rate), which took effect on 20 March 2012.
Details
Details of the Amendment Rules are set out in the Attachment.
Consultation
On 28 February 2012, States and Territories were asked whether they would be increasing the NHTP contribution in their jurisdiction in line with increases in the Pension Rate and Rental Assistance Rate. New South Wales, Queensland, the Northern Territory, South Australia and Tasmania advised the Commonwealth of changes to their respective NHTP contribution rates. The Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 1) took effect on 21 March 2012 to reflect these increases.
On 2 March 2012, Western Australia advised of its intention to increase its NHTP contribution rate, but did not confirm an increase due to a delay in their gazettal of the new NHTP contribution rate.
On 20 April 2012, Western Australia advised that its NHTP contribution rate was gazetted in the Western Australia Gazette, increasing the contribution rate to $50.95 per day in line with the indexation applied to the Pension Rate and the Rental Assistance Rate.
The Amendment Rules commence on 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 2012 (No. 3)
- Name of Rules
Rule 1 provides that the title of the Rules is the Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 3) (the Amendment Rules).
2. Commencement
Rule 2 provides that the Amendment Rules are to commence 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, Subparagraph 8A(3)(a)(viii)
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)(viii) of the Principal Rules by increasing the NHTP contribution at public hospitals in Western Australia:
- From $50.55 to $50.95;
PRIVATE HEALTH INSURANCE BRANCH
DEPARTMENT OF HEALTH AND AGEING
MAY 2012