EXPLANATORY STATEMENT

Private Health Insurance (Notifications Under the Premiums Reduction Scheme) Determination 2013.

Purpose

Subsections 23-15(2) and 23-30(2) of the Private Health Insurance Act 2007 (the Act) authorise the Chief Executive Medicare to determine the period within which a private health insurer must notify the Chief Executive Medicare that a person has a applied to be a participant in, or has withdrawn from, the premiums reduction scheme.

This determination requires that:

• a private health insurer that receives an application by a person to become a participant in the premiums reductions scheme must notify the Chief Executive Medicare of the application, in the approved form, no more than 7 days after receiving the application; and
• a private health insurer that receives a notice that a person no longer wishes to be registered in respect of a policy must notify the Chief Executive Medicare of the notice, in the approved form, no more than 7 days after receiving the application.

Background

Subsection 23-15(2) of the Act currently requires a private health insurer that receives an application from a person for registration as a participant under subsection 23‑15(1) of the Act to notify the Chief Executive Medicare of the application, in the approved form, no more than 14 days after receiving the application, or any other period determined by the Chief Executive Medicare.

Subsection 23-30(2) of the Act currently requires a private health insurer that receives a notice from a person under subsection 23‑30(1) of the Act indicating that they no longer wish to be registered in respect of a policy to notify the Chief Executive Medicare of the notice, in the approved form, no more than 14 days after receiving the notice, or any other period determined by the Chief Executive Medicare.

Section 279-15(2) of the Act requires payments to private health insurers to be made by the 15th of each month. Due to technical systems issues, pay runs for those payments must commence 7 days prior.

Changing the time periods for notification under subsection 23-15(2) and subsection 23-30(2) from 14 days to 7 days will enable the Chief Executive Medicare to more easily verify the information provided by private health insurers and provide more accurate monthly payments to them.

Commencement

The determination commences on the day after it is registered.

Explanation of the provisions

Section 1 provides that the title of the determination is the Private Health Insurance (Notifications Under the Premiums Reduction Scheme) Determination 2013.

Section 2 provides that the determination commences on the day after it is registered.

Section 3 defines ‘Act’ to mean the Private Health Insurance Act 2007.

Section 4 provides that a private health insurer that receives an application under subsection 23-15(1) of the Act musty notify the Chief Executive Medicare of the application, in the approved form, no more than 7 days after receiving the application.

Section 5 provides that a private health insurer that receives a notice under subsection 23-30(1) of the Act must notify the Chief Executive Medicare of the notice, in the approved form, no more than 7 days after receiving the notice.

Consultation

Private health insurers have been consulted and are aware that the changes to the notification timeframes will require changes to their business processes.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Private Health Insurance (Notifications Under the Premiums Reduction Scheme) Determination 2013.

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

This determination is required so as to require a private health insurer that receives an application under subsection 23-15(1) of the Act to notify the Chief Executive Medicare of the application, in the approved form, no more than 7 days after receiving the application. The determination commences on the day after it is registered.

The determination requires a private health insurer that receives a notice under subsection 23-30(1) of the Act to notify the Chief Executive Medicare of the notice, in the approved form, no more than 14 days after receiving the application.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Private Health Insurance (Notifications Under the Premiums Reduction Scheme) Determination 2013.