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. 9)
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 Chapter 3 and/or section 188-1 of the Act.
The Private Health Insurance (Complying Product) Amendment Rules 2012 (No. 9) (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 from $50.95 to $52.05 per day.
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 Schedule to the Amendment Rules makes 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 and the Maximum Daily Rate of Rental Assistance (Pension and Rental Assistance Rates), which take effect on the day after registration.
Consultation
On 23 August 2012, states and territories were asked whether they would be increasing the NHTP contribution and accommodation rates in their jurisdiction in line with increases in the Pension and Rental Assistance Rates. New South Wales, Queensland, South Australia, Tasmania and Victoria requested an increase to the NHTP contribution rates in their public hospitals from 20 September 2012. The Australian Capital Territory advised that it would not increase its NHTP contribution rate at this time. The Northern Territory subsequently requested an increase to its NHTP contribution rate which became effective from 2 November 2012. On 2 November 2012, Western Australia advised the Department of Health and Ageing to increase the NHTP contribution rate for public hospitals in their state.
The Amendment Rules commence 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
2