EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Health and Ageing
Private Health Insurance Act 2007
Private Health Insurance (Lifetime Health Cover) Amendment Rules 2010
Section 333-20 of the Private Health Insurance Act 2007 (the Act) provides that the Minister may make Private Health Insurance (Lifetime Health Cover) Rules providing for matters required or permitted by Part 2-3 of the Act, or necessary or convenient to be provided in order to carry out or give effect to Part 2-3 of the Act.
Part 2-3 of the Act relates to Lifetime Health Cover. Under Lifetime Health Cover, private
health insurers are able to set different premiums depending on the age when an insured
person first takes out hospital cover with a private health insurer. People are encouraged to
take out hospital cover by the 1 July following their Lifetime Health Cover Base Day, which for most people is the 1 July following their 31st birthday. The Act sets out the rate
for increases in premiums for people who do not take out private health cover before that
time.
The Private Health Insurance (Lifetime Health Cover) Rules 2007 (the Principal Rules) commenced on 31 March 2007. The Rules set out administrative matters relating to Lifetime Health Cover, such as the categories of people who are taken to have hospital cover and the provision for suspension of hospital cover. Among other provisions, the Principal Rules also provide for categories of persons taken to have hospital cover for the purposes of Lifetime Health Cover provided by or through:
- the Australian Antarctic Division of the Department of the Environment and
Heritage; or
- the Australian Defence Force (for members on continuous full-time service or
their adult dependants).
The Private Health Insurance (Lifetime Health Cover) Amendment Rules 2010 (the Amendment Rules) amend Part 2, clause 4(a) and Part 3, subclause 9(1)(c) of the Principal Rules.
The purpose of these amendments is to update the references in the Principal Rules to the Department of the Environment and Heritage to reflect the current name of the Department, the Department of Sustainability, Environment, Water, Population and Communities.
Details of the Amendment Rules are set out in the Attachment.
The Act does not specify any condition that needs to be satisfied before the power to make Amendment Rules may be exercised.
The Amendment Rules are a legislative instrument for the purposes of the Legislative Instrument Act 2003.
Consultation
Consultation was not undertaken in relation to the amendments with registered private health insurers or the Australian Private Hospitals Association. These amendments are of a minor and mechanical nature only and do not alter existing arrangements.
Authority: Section 333-20 of the
Private Health Insurance Act 2007
PRIVATE HEALTH INSURANCE BRANCH
DEPARTMENT OF HEALTH AND AGEING
OCTOBER 2010
ATTACHMENT
DETAILS OF THE PRIVATE HEALTH INSURANCE (LIFETIME HEALTH COVER) AMENDMENT RULES 2010.
1 Name of Rules
Rule 1 provides that the title of the Rules is the Private Health Insurance (Lifetime Health Cover) Amendment Rules 2010 (the Amendment Rules).
2. Commencement
Rule 2 provides that the Amendment Rules are to commence on the day after registration.
3. Amendment of the Private Health Insurance (Lifetime Health Cover) Rules 2007
Rule 3 provides that the Schedule to the Amendment Rules amends the Private Health Insurance (Lifetime Health Cover) Rules 2007 which commenced on 31 March 2007.
Schedule ― Amendments
Item 1 - Part 2, clause 4(a):
Clause 4(a) of Part 2 of the Principal Rules provides that adults whose health services are provided by or through the Australian Antarctic Division of the Department of the Environment and Heritage are taken to have hospital cover for the purpose of lifetime cover. Item 1 of the Schedule to the Amendment Rules amends Part 2, clause 4(a) by updating the reference to the Department of the Environment and Heritage to reflect the current name of the Department, the Department of Sustainability, Environment, Water, Population and Communities.
Item 2- Part 3, subclause 9(1)(c):
Subclause 9(1)(c) of the Principal Rules provides that a private health insurer must accept a written statement issued by the Australian Antarctic Division of the Department of the Environment and Heritage, that the person and health services provided by or through the Australian Antarctic Division at the particular time or during the particular period as conclusive evidence of a person having had hospital cover at a particular time or during a particular period. Item 2 of the Schedule to the Amendment Rules amends Part 3, subclause 9(1)(c) by updating the reference to the Department of the Environment and Heritage to reflect the current name of the Department, the Department of Sustainability, Environment, Water, Population and Communities.