Commonwealth of Australia Explanatory Memoranda

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HEALTH LEGISLATION AMENDMENT BILL 2007

                                  2004-2005-2006-2007




          THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                            HOUSE OF REPRESENTATIVES




                 HEALTH LEGISLATION AMENDMENT BILL 2007




                SUPPLEMENTARY EXPLANATORY MEMORANDUM




                  Amendments to be Moved on Behalf of the Government




(Circulated by the authority of the Minister for Health and Ageing, the Hon Tony Abbott, MP)
                 HEALTH LEGISLATION AMENDMENT BILL 2007

OUTLINE

The proposed government amendments amend the Health Legislation Amendment Bill 2007.

The amendments will allow members of the Private Health Insurance Administration Council
(the Council) who are insured by a particular health insurer, to participate in discussion when
that insurer's affairs are being considered by the Council, if the Minister or Council
determine that they may.

The amendments are required to ensure that the provisions contained in section 270-45 of the
Private Health Insurance Act 2007 (the Act) are not so restrictive as to prevent valuable input
into discussion by experienced Council members.

The effect of the amendments will be that Council members may participate in discussion,
despite a pecuniary interest, where the Minister or other Council members determine that it is
appropriate. The Council member who has disclosed an interest will not be allowed to
participate in making determinations following discussion, and will not be allowed to
participate in discussion about whether or not to allow them to participate.

Financial Impact Statement

These amendments will have no financial impact for the Commonwealth.




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                 HEALTH LEGISLATION AMENDMENT BILL 2007

NOTES ON CLAUSES

Amendment 1
This amends Clause 2 of the Bill which provides for the commencement of the Bill. The
amendment substitutes "item 4" with "items 4 to 4B" to provide that these amendments
commence on Royal Assent.

Amendment 2
This amendment adds Clauses 4A and 4B to the Bill.

Clause 4A Subsection 270-45(4)
This clause amends subsection 270-45(4) of the Act to allow the Minister or Council
members to determine whether or not a Council member who has disclosed a pecuniary
interest in a private health insurer, may participate in discussion about that insurer.

Clause 4B At the end of section 270-45
This clause inserts a new subsection into section 270-24 of the Act. New subsection
270-45(5) provides that a Council member who has disclosed a pecuniary interest in an
insurer may not participate in discussion to determine whether or not that Council member
will be permitted to take part in discussion about the insurer.




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