EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Health
Private Health Insurance Act 2007
Private Health Insurance (Registration) Amendment Rules 2013 (No. 2)
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.
The Private Health Insurance (Registration) Amendment Rules 2013 (No. 2)
(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 ACA Health Benefits Fund’s (ACA) restricted access group by removing ACA as a stated exception to Section 6(e) and (g) of the Rules. Removing ACA as a stated exception to Section 6(e) and (g) of the Rules will allow ACA to offer benefits to siblings, grandchildren, parents, partners and dependent children of people who are adult children of the current restricted access group.
The impact of this amendment is not significant as it is estimated that there are approximately 15,000 people who will fit this category.
Background
ACA, as 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. The current restricted access group for ACA includes the following:
- a person who is, or was a literature evangelist, while distributing for Home Education Services; or
- a person who is, or was, an employee of:
- an incorporated entity that is affiliated with the Seventh-day Adventist Church in Australia;
- Avondale College Foundation;
- Karalundi Aboriginal Education Centre;
- Mirriwinni Gardens Aboriginal Centre; or
- Sydney Adventist Hospital Foundation.
Consultation
The Department of Health and Ageing consulted ACA in December 2012, January and February 2013 regarding the Amendments and are comfortable they will not significantly affect existing arrangements.
The Private Health Insurance Administration Council (PHIAC) was consulted regarding this Amendment. The PHIAC advised they had no significant concerns with the Amendment.
The Office of Best Practice Regulation (OBPR) was also consulted. OBPR advised that a Regulation Impact Statement was not required because the amendment is minor.
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
MARCH 2013