EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Health
Private Health Insurance Act 2007
Private Health Insurance (Complying Product) Amendment Rules 2018 (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 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 2018 (No. 5)
(the Amendment Rules) amend Section 8A of the Private Health Insurance (Complying Product) Rules 2015 (the Principal Rules) which commenced on 1 July 2015.
Purpose
The purpose of the amendments to Section 8A is to update the patient contribution payable per night for nursing-home type patients (NHTP) at public hospitals in each State and Territory and at private hospitals nationally.
Background
Section 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.
Schedule 1 to the Amendment Rules makes minor changes to the definition of ‘patient contribution’ in subsection 8A(3) of the Principal Rules by updating the NHTP contribution rate at public hospitals in each State and Territory and private hospitals nationally. Changes to the NHTP contribution rate reflect the indexation applied to the Adult Pension Basic Rate and the Maximum Daily Rate of Rental Assistance (Pension and Rental Assistance Rates), which took effect on 20 September 2018.
Details of the Amendment Rules are set out in the Attachment.
Consultation
On 23 August 2018, States and Territories were asked whether they would increase the NHTP contribution rates in their jurisdiction in line with increases in the Pension and Rental Assistance Rates which take effect on 20 September 2018. New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia have advised that they will increase the NHTP contribution rates in their public hospitals from 20 September 2018 to $60.65. The Australian Capital Territory and the Northern Territory have advised that they are not increasing their NHTP contribution rates at this time.
The Amendment Rules commence on 20 September 2018.
The Amendment Rules are a legislative instrument for the purposes of the Legislation Act 2003.
ATTACHMENT
DETAILS OF THE PRIVATE HEALTH INSURANCE (COMPLYING PRODUCT) AMENDMENT RULES 2018 (No. 5)
Section 1 Name
Section 1 provides that the title of the Rules is the Private Health Insurance (Complying Product) Amendment Rules 2018 (No. 5) (the Amendment Rules).
Section 2 Commencement
Section 2 provides that the Amendment Rules are to commence on 20 September 2018.
Section 3 Authority
Section 3 provides that the Amendment Rules are made under item 3 of the table in section 333-20 of the Private Health Insurance Act 2007.
Section 4 Schedules
Section 4 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1–Amendments
Item 1 – Subsection 8A(3) (paragraph (a) of the definition of patient contribution)
Subsection 8A(3) of the Principal Rules sets out the patient contribution for privately insured nursing-home type patients (NHTPs) at public hospitals.
Item 1 of Schedule 1 to the Amendment Rules provides that paragraph (a) of the definition of patient contribution in the Principal Rules is amended by updating the NHTP contribution at public hospitals in all States but not the Australian Capital Territory or the Northern Territory.
Item 2 – Subsection 8A(3) (paragraph (b) of the definition of patient contribution)
Subsection 8A(3) of the Principal Rules sets out the patient contribution for privately insured NHTPs at private hospitals.
Item 2 of Schedule 1 of the Amendment Rules provides that paragraph (b) of the definition of patient contribution in the Principal Rules is amended by updating the NHTP contribution at private hospitals in Australia to $60.65.