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. 5)
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 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. 5) (the Amendment Rules) amend the Private Health Insurance (Complying Product) Rules 2010 (No. 2) (the Rules) which commenced on 14 January 2011.
Purpose
The purpose of the Amendment Rules is to make clearer on the Standard Information Statements (SISs) where the monthly premium price, incorporating the 30% rebate, must be included on the SISs in addition to the premium price without any rebate.
The Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 4) change the form of the SISs and requires insurers to insert the premium amount that includes the Government’s 30% rebate. However, the Amendment Rules add additional clarity as to where the premium amount including the 30% rebate is to be inserted.
Background
Under Division 93 of the Act, health insurers are required to make standard product information, known as a SIS, for all of their active complying health insurance products available to consumers. This requirement was included to ensure that consumers can easily compare health insurance policies and understand their entitlements under health insurance policies.
On 21 May 2012, the Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 4) were registered. These rules commence on 1 July 2012 and amend the form of the SIS to provide for the rebate tier changes. It has been brought to the Department’s attention that it could be made clearer where the premium amount with the 30% rebate is to be included on the SIS.
Details
The Amendment Rules amend Schedules 1-3 and Part 1 of Schedule 4 of the Rules.
Further details about the amendments to the SISs are provided in the Attachment of this explanatory statement.
Consultation
Consultation was not necessary with respect to these amendments as the amendments are of a minor nature and do not substantially alter existing arrangements.
The Office of Best Practice Regulation has advised that a Regulatory Impact Statement was not required as the amendments do not substantially increase business compliance costs for private health insurers.
The Amendment Rules commence immediately after the commencement of the Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 4).
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. 5)
Part 1 Preliminary
Section 1 Name of Rules
Section 1 provides that the title of the Rules is the Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 5) (the Amendment Rules).
Section 2 Commencement
Section 2 provides the Rules commence immediately after the commencement of the Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 4).
Section 3 Amendment of Private Health Insurance (Complying Product) Rules 2010 (No. 2)
Section 3 provides that the Schedule to the Amendment Rules amends the Private Health Insurance (Complying Product) Rules 2010 (No. 2), which commenced on 14 January 2011.
Schedule – Amendments
Item 1 – Schedule 1- Standard information statements: hospital treatment
The amendment inserts in the form of the statement, directly under the heading ‘Monthly Premium,’ the words ‘With 30% Rebate’. The premium amount with the 30% Rebate will be inserted next to these words.
Item 2 – Schedule 2- Standard information statements: general treatment
The amendment inserts in the form of the statement, directly under the heading ‘Monthly Premium,’ the words ‘With 30% Rebate’. The premium amount with the 30% Rebate will be inserted next to these words.
Item 3 – Schedule 3- Standard information statements: combined products
The amendment inserts in the form of the statement, directly under the heading ‘Monthly Premium,’ the words ‘With 30% Rebate’. The premium amount with the 30% Rebate will be inserted next to these words.
Item 4 – Schedule 4- Standard information statements: permitted content, Part 1- all statements
The amendment inserts in the table, in the row titled ‘Monthly Premium’ in the third column after $[xx.yy], the words “(with 30% rebate)”.
PRIVATE HEALTH INSURANCE BRANCH
DEPARTMENT OF HEALTH AND AGEING
MAY 2012