EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Health
Private Health Insurance Act 2007
Private Health Insurance (Complying Product) Amendment Rules 2014 (No. 4)
Authority
Section 333-20 of the Private Health Insurance Act 2007 (the Act) provides that the Minister, or his delegate, may make Private Health Insurance (Complying Product) Rules providing for matters required or permitted by Chapter 3 and section 188-1 of the Act, or necessary or convenient to be provided in order to carry out or give effect to Chapter 3 and section 188-1 of the Act.
The Private Health Insurance (Complying Product) Amendment Rules 2014 (No. 4) (the Amendment Rules) amend Part 2 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 amendments to Part 2 of the Principal Rules is to specify new product subgroups that will be consistent with amendments to the Act made by the Private Health Insurance Legislation Amendment Act 2014 (the Amending Act).
Background
The Principal Rules, which commenced on 14 January 2011, provide some of the requirements that complying health insurance products must comply with. These requirements include:
- products to be community-rated that is, made available in a way that does not discriminate between people;
- products be in the form of a complying health insurance product; and
- private health insurers who make the products available must meet certain obligations to people insured or seeking to be insured under the products.
Part 2 of the Principal Rules specifies insured groups for the purposes of a product subgroup under section 63-5(2A)(b) of the Act.
The Amendment Rules create no additional obligations for private health insurers. This amendment simplifies the application of the Rebate.
Details
Details of the Amendment Rules are set out in the Attachment.
Consultation
The private health insurance industry was consulted on this amendment and its intent. It was discussed during meetings and conversations between insurers and the Department of Health and during a Department lead industry workshop on the implementation of the policy.
The Amendment Rules commence immediately after the commencement of the Amending Act.
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 2014 (No. 4)
Section 1 Name of Rules
Section 1 provides that the title of the Rules is the Private Health Insurance (Complying Product) Amendment Rules 2014 (No. 4).
Section 2 Commencement
Section 2 provides that the Rules are to commence immediately after the commencement of the Private Health Insurance Legislation Amendment Act 2014 (the Amending Act)
Section 3 Amendment of the Private Health Insurance (Complying Product) Rules 2010 (No. 2)
Section 3 provides that the Schedule to the Rules amends the Private Health Insurance (Complying Product) Rules 2010 (No. 2) as amended.
Schedule – Amendments
Item 1 – Part 2, Paragraph 5
Item 1 deletes and substitutes subsection 5(1) to create new product subgroups for the purposes of section 63-5 of the Act.
Subsection 5(2) defines non-student policy as a complying health insurance policy that covers one or more dependent child non-students.