EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Health
Private Health Insurance Act 2007
Private Health Insurance (Registration) Amendment Rules 2012
Authority
Section 333-20 of the Private Health Insurance Act 2007 (the Act) provides that the Minister may make Private Health Insurance (Registration) Rules providing for matters required or permitted by Part 4-3 of the Act, or necessary or convenient in order to carry out or give effect to Part 4-3 of the Act.
Part 4-3 of the Act contains provisions relating to the power of the Private Health Insurance Administration Council to register private health insurers.
The Private Health Insurance (Registration) Amendment Rules 2012 (the Amendment Rules) amend the Private Health Insurance (Registration) Rules 2009 (No.2) (the Principal Rules), which commenced on 22 July 2009.
Purpose
The purpose of the Amendment Rules is to expand The Doctors’ Health Fund Limited (DHF) restricted access group as described in the Schedule to the Principal Rules.
Background
DHF is a restricted access insurer and in accordance with subsection 126-20(6) of the Act, may only make available complying health insurance products to people who belong to a particular group as defined in subsection 126-20(7) of the Act. Restricted access insurers and groups are listed in the Schedule to the Principal Rules.
Avant Group Holdings Limited (Avant) is Australia’s largest medical indemnity insurer supporting the medical profession, medical students, optometrists and a small number of allied health professionals.
The Federal Court has provided approval for Avant to acquire DHF. As a consequence of this acquisition, DHF is aligning its membership base with Avant’s so that DHF can offer health insurance to Avant’s existing membership base and other people associated with Avant.
Details
The Amendment Rules insert Avant Insurance Limited and Avant Law Pty Limited in subitem 13.2, Column 2 of the Schedule because of the acquisition of DHF by Avant. This will enable DHF to make available complying health insurance products to members of Avant. The Amendment Rules further inserts health practitioners as a class of individuals eligible and replace a reference to Medical Practitioner.
Further details of the Amendment Rules are set out in the Attachment.
Consultation
In accordance with section 17 of the Legislative Instruments Act 2003 the Department of Health and Ageing consulted with DHF and the Private Health Insurance Administration Council.
The Office of Best Practice Regulation was also consulted and advised that a Regulation Impact Statement was not required because the amendment is machinery in nature as a consequence of the acquisition of DHF by Avant.
The Amendment Rules commence on the day after registration on the Federal Register of Legislative Instruments.
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
PRIVATE HEALTH INSURANCE BRANCH
DEPARTMENT OF HEALTH AND AGEING
MAY 2012
ATTACHMENT
DETAILS OF THE PRIVATE HEALTH INSURANCE (REGISTRATION) AMENDMENT RULES 2012
Part 1 – Preliminary
Section 1 Name of Rules
Section 1 provides that the title of the rules is the Private Health Insurance (Registration) Amendment Rules 2012 (the Amendment Rules).
Section 2 Commencement
Section 2 provides that the Amendment Rules are to commence on the day after registration.
Section 3 Amendment of the Private Health Insurance (Registration) Rules 2009 (No.2)
Section 3 provides that the Schedule to the Amendment Rules amends the Private Health Insurance (Registration) Rules 2009 (No.2) (the Principal Rules), which commenced on 22 July 2009.
Schedule – Amendments
Item 1– Schedule – restricted access groups for certain insurers, Item 13 of the Table
Item 13 contains, for the purpose of paragraph 126-20(7)(e) of the Act, the description of a group for restricted access insurers. Some provisions have been carried over from the Principal Rules but have been renumbered. Others expand the restricted access group as set out below.
Item 13.1 –
A new item 13.1 is inserted to provide that a person who is, or was, a medical practitioner, as defined in section 3(1) of the Health Insurance Act 1973 (Commonwealth) is a member of the group. This has been carried over from the Principal Rules and renumbered.
Item 13.2 –
A new item 13.2 has been inserted to expand the restricted access group to include a person who is, or was at any time:
Item 13.2(a) - in one of the following categories of ‘health practitioner’, as listed in the Health Practitioner Regulation National Law Act 2009 (Qld) (whether or not registered or practising in Queensland or any other Australian State or Territory):
(i) medical;
(ii) medical radiation;
(iii) optometry;
(iv) dental;
(v) occupational therapy;
(vi) physiotherapy; and
(vii) psychology,
(‘Health Practitioner’)
This is a new item to expand the restricted access group.
Item 13.2(b) - an employee of the Medical Practitioner or a Health Practitioner or an officer or employee of an incorporated practice of a Medical Practitioner or a Health Practitioner;
This subitem has been carried over from the Principal Rules and amended to include an employee of a Health Practitioner. It has also been renumbered.
Item 13.2(c) - a person studying to become a Health Practitioner as listed above in item 13.2(a) at an Australian university medical school or other educational institution;
This subitem has been carried over from the Principal Rules with the reference to a Medical Practitioner substituted to Health Practitioner. It has also been renumbered.
Item 13.2(d) - an overseas trained doctor enrolled through the Australian Medical Council (the ‘AMC’) to sit for the examinations of that Council or of one of the specialist colleges affiliated with the AMC;
This subitem has been carried over from the Principal Rules and renumbered.
Item 13.2(e) - an officer or employee of the federal, or a state, Australian Medical Association;
This subitem has been carried over from the Principal Rules and renumbered.
Item 13.2(f) - an officer or employee of an associated or subsidiary organisation of the federal, or a state, Australian Medical Association;
This subitem has been carried over from the Principal Rules and renumbered.
Item 13.2(g) - an officer or employee of any federal or state association of registered medical practitioners; or
This subitem has been carried over from the Principal Rules and renumbered.
Item 13.2(h) - an officer or employee (including contractors) of Avant Insurance Limited (ABN 82 003 707 471) or Avant Law Pty Limited (ACN 136 429 153).
This subitem is a new item which is included to align DHF’s membership base with Avant’s.