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2002-2003
THE PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
SENATE
HEALTH LEGISLATION AMENDMENT (PRIVATE HEALTH INSURANCE
REFORM) BILL 2003
SUPPLEMENTARY EXPLANATORY MEMORANDUM
Amendments to
be Moved on Behalf of the Government
Circulated by
authority of the Minister for Health and Ageing,
Senator the Hon Kay
Patterson
The proposed Government amendments amend the Health Amendment
Legislation (Private Health Insurance Reforms) Bill 2003 (the Bill) to
enhance clarity and certainty in the operation of the reforms contained in the
Bill.
The proposed amendments make it clear that health funds may not
discriminate in conducting health insurance business having regard to a
person’s religious beliefs.
The amendments also clarify that a
health fund will not breach community rating principles:
• If it
sets different contribution rates or benefit levels having regard to the place
of residence of the person; or
• If it limits the quantum of benefits
payable under ancillary health benefit tables by reference solely to the quantum
of benefits already paid in respect of a specified period.
These
amendments recognise the current ability of health funds to set different rates
and benefits having regard to the different cost of health services between the
States and Territories, and to limit the quantum of benefits paid via ancillary
health benefits having regard to the benefits already paid within a specified
period.
These amendments have no financial impact.
NOTES ON
AMENDMENTS
Amendment 1
1. The purpose of this amendment to
Item 3 of Schedule 1 to the Health Legislation Amendment (Private Health
Insurance Reform) Bill 2003 (the Bill) is to include “religious
belief” in the definition of “improper discrimination”.
Health funds may not discriminate against contributors (or those seeking to
become contributors) in relation to access and the use of private health
insurance products having regard to their religious beliefs.
Amendment
2
2. The purpose of this amendment to Item 3 of Schedule 1 to the
Bill is to clarify the definition of “improper discrimination”
having regard to a person’s place of residence. The amendment recognises
the current ability of health funds to set different contribution rates and
benefit levels where contributors or dependents have their place of residence in
one State or Territory as distinct from another.
Amendment
3
3. This amendment is consequential to proposed amendment
2.
Amendment 4
4. The purpose of this amendment is to
clarify the operation of community rating principles in relation to ancillary
health benefits. Health funds have not previously been prohibited from
discriminating in relation to the quantum of benefits payable via ancillary
health benefits by reference solely to the quantum of benefits already paid in
respect of a specified period. This amendment recognises and continues this
situation while clarifying the operation of community rating in this
circumstance.
Amendment 5
5. This amendment is
consequential to proposed amendment 2. The amendment recognises the current
ability of health funds to set different contribution rates and benefit levels
where contributors or dependents have their place of residence in one State or
Territory as distinct from another.
Amendment 6
6. The
purpose of this amendment is to correct an error in relation to the citation of
a class of migrant visa.