Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 5)

Administered by Department of Health, Disability and Ageing

Legislation au F2012L01145 Rules Not in force Legislative Instrument

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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

 


Overview

The Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 5) were enacted to address a clarity issue regarding the inclusion of the 30% government rebate in the monthly premium prices on Standard Information Statements (SIS) issued by health insurers. This amendment was made under the authority of Section 333-20 of the Private Health Insurance Act 2007, which allows the Minister for Health to create rules necessary or convenient to carry out the Act. The policy objective behind these rules is to ensure that consumers can easily compare health insurance policies and understand their entitlements, including the rebate amount. The Amendment Rules follow the Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 4) which were introduced to change the form of the SIS to include the premium amount that includes the Government’s 30% rebate. The purpose of these amendments is to clearly indicate on the SISs where the premium amount, incorporating the 30% rebate, must be included.

Scope and Application

The Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 5) amends the Private Health Insurance (Complying Product) Rules 2010 (No. 2), which commenced on 14 January 2011, to provide additional clarity on the Standard Information Statements (SIS) for health insurance products. Specifically, the Amendment Rules clarify where the monthly premium price, incorporating the 30% rebate, must be included on the SISs. This amendment follows the introduction of the Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 4), which require insurers to insert the premium amount that includes the Government’s 30% rebate on the SISs. The Amendment Rules apply to health insurers who must provide standard product information to consumers under Division 93 of the Private Health Insurance Act 2007. These rules are of a minor nature and do not substantially alter existing arrangements, and thus, consultation was not considered necessary. The Amendment Rules are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Key Provisions

The Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 5) (Amendment Rules) amend the existing Private Health Insurance (Complying Product) Rules 2010 (No. 2) to provide clearer guidance on where the monthly premium price, incorporating the 30% rebate, must be included on the Standard Information Statements (SISs) for health insurance products. These amendments are necessary to clarify the presentation of rebate information to consumers, ensuring they can easily compare health insurance policies and understand their entitlements. Specifically, the Amendment Rules insert the phrase "With 30% Rebate" directly under the heading "Monthly Premium" in the relevant schedules for hospital, general treatment, and combined products (Schedules 1-3), and in the permitted content table for all statements (Schedule 4, Part 1). Health insurers governed by the Private Health Insurance Act 2007 are required to ensure that their SISs clearly display the monthly premium price that includes the Government’s 30% rebate. This involves inserting the premium amount with the rebate next to the specified phrase "With 30% Rebate" under the "Monthly Premium" heading. The intent behind this is to facilitate transparency and ease of comparison for consumers, allowing them to see the actual cost of the insurance after the rebate is applied. The obligation to comply with these rules is a statutory requirement under Division 93 of the Act, which mandates that insurers provide standard product information to consumers. The Amendment Rules do not introduce new offences or penalties but reinforce the existing obligations and requirements under the Private Health Insurance Act 2007. Failure to comply with the Act or the amended Rules could result in civil or administrative penalties. For instance, under Section 170 of the Act, non-compliance with the requirements to provide accurate and clear information on SISs could lead to penalties. These penalties can include fines and other sanctions as deemed appropriate by the Minister or relevant regulatory body. The Act also provides for corrective notices and other enforcement actions to ensure compliance, though the exact penalties are not specified in the Amendment Rules themselves.

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