Private Health Insurance Act 2007
EXPLANATORY STATEMENT
Issued by the authority of the Private Health Insurance Administration Council
Private Health Insurance (Health Benefits Fund Administration) Amendment Rules 2008 (No. 2)
Authority for the Rules
The Private Health Insurance (Health Benefits Fund Administration) Amendment Rules 2008 (No. 2) (the Rules) are made by the Private Health Insurance Administration Council (the Council) under item 3 of the table in section 333-25 of the Private Health Insurance Act 2007 (the Act).
Section 333-25 of the Act also provides that the Council may make rules providing for matters:
(a) required or permitted by Part 4-4 to be provided; or
(b) necessary or convenient to be provided in order to carry out or give effect to that, Part.
All legal and other requirements for making the Rules have been met.
Purpose of the amendment
The purpose of this amendment is to extend the period of operation of rule 12A of the Private Health Insurance (Health Benefits Fund Administration) Rules 2007. Rule 12A specifies simplified arrangements for private health insurers which are incorporated associations but intend to change their status to a corporation under the Corporations Act 2001 to apply under section 146-5 of the Act to transfer their health insurance business to the new corporation by operation of an order under a law of a State or Territory. All private health insurers must be Corporations Act companies by 1 January 2010.
The current rule 12A applies to an application for approval of the transfer made before 1 July 2008. The amendment extends this so rule 12A will apply to applications made before 1 January 2010.
This is in line with recent amendments to the Act which require all insurers to be companies under the Corporations Act by 1 January 2010.
An explanation of each of the rules is set out in the Attachment.
Consultation
Affected insurers have been consulted.
The Department of Health and Ageing has been consulted.
2
ATTACHMENT
DETAILS OF THE PRIVATE HEALTH INSURANCE (HEALTH BENEFITS FUND ADMINISTRATION) AMENDMENT RULES 2008 (No. 2)
1. Name of Rules
Rule 1 provides that the title of the Rules is the Private Health Insurance (Health Benefits Fund Administration) Amendment Rules 2008 (No. 2).
2. Commencement
Rule 2 provides that the Rules commence on the day after they are registered.
3. Amendment of the Private Health Insurance (Health Benefits Fund Administration) Rules 2007
Rule 3 provides that the Schedule of the Rules amends the Private Health Insurance (Health Benefits Fund Administration) Rules 2007.
Schedule –, Item 1
This clause amends the period of operation of rule 12A of the Private Health Insurance (Health Benefits Fund Administration) Rules 2007 from 1 July 2008 to 1 January 2010.
Rule 12A specifies simplified arrangements for private health insurers which are incorporated associations but intend to change their status to a corporation under the Corporations Act 2001 to apply under section 146-5 of the Act to transfer their health insurance business to the new corporation by operation of an order under a law of a State or Territory. All private health insurers must be Corporations Act companies by 1 January 2010.
The current rule 12A applies to an application for approval of the transfer made before 1 July 2008. The amendment extends this so rule 12A will apply to applications made before 1 January 2010.
This is in line with recent amendments to the Act which require all insurers to be companies under the Corporations Act by 1 January 2010.