Commonwealth Numbered Regulations - Explanatory Statements

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PRIVATE HEALTH INSURANCE INCENTIVES AMENDMENT REGULATIONS 1999 (NO. 2) 1999 NO. 347

STATUTORY RULES 1999 NO. 347

Issued by the Authority of the Minister for Health and Aged Care

Private Health Insurance Incentives Act 1998

Private Health Insurance Incentives Amendment Regulations 1999 (No. 2)

Section 19-40 of the Private Health Insurance Incentives Act 1998 (the PHI Act) provides that the Governor-General may make Regulations prescribing matters for the purposes of the Act.

The principal purpose of the amending Regulations is to give effect to amendments to the PHI Act contained in Schedule 3 of the Health Legislation Amendment Act (No. 3) 1999 (the amending Act). Schedule 3 of the amending Act amends the PHI Act to remove the requirement for annual registration for health funds and contributors for the premiums reduction option of receiving the Federal Government 30% Rebate on private health insurance.

New paragraph 14A(1)(b) of the PHI Act provides that the Minister may revoke a fund's status as a participating fund if the fund has failed to comply with a condition of participation in the premiums reduction scheme that is prescribed by the regulations. Previously conditions of participation were matters that the Minister had to have regard to in approving applications by funds to participate in the premiums reduction scheme.

The amending regulations prescribe the following conditions of participation in the premiums reduction scheme for the purposes of new paragraph 14A(1)(b) of the PHI Act:

*       Funds are required, on or before 15 July of each year, to issue to each participating contributor an annual written statement setting out the amount of the premium paid and the amount of the reduction under the premiums reduction scheme for the previous financial year;

*       Funds are required to notify contributors of all premium increases; and

*       Funds must use the phrase "Federal Government 30% Rebate on private health insurance" or the 30% Rebate logo in all advertisements, annual statements, written notices, forms and correspondence relating to the premiums reduction scheme.

Details of the amending regulations are set out in the Attachment.

The amending regulations commenced on gazettal.

ATTACHMENT

Regulation 1 provides that the Regulations may be cited as the Private Health Insurance incentives Amendment Regulations 1999 (No. 2 ).

Regulation 2 provides that the Regulations commence on gazettal.

Regulation 3 provides that the Private Health Insurance Incentives Regulations 1998 are amended by Schedule 1

Item 1 of Schedule 1 repeals regulations 4 and 5 and substitutes a new regulation 4. New regulation 4 prescribes the following conditions of participation in the premiums reduction scheme for the purposes of new paragraph 14A(1)(b) of the PIE Act:

*       Funds are required, on or before 15 July of each year, to issue to each participating contributor an annual written statement setting out the amount of the premium paid and the amount of the reduction under the premiums reduction scheme for the previous financial year;

*       Funds are required to notify contributors of all premium increases; and

*       Funds must use the phrase "Federal Government 30% Rebate on private health insurance" or the 30% Rebate logo in all advertisements, annual statements, written notices, forms and correspondence relating to the premiums reduction scheme.

Item 2 of Schedule 1 amends regulation 6 in consequence of the amendments made by proposed item 1. Regulation 6 sets out the requirements in relation to the annual statement to contributors.

Item 3 of Schedule 1 repeals paragraphs 6(c) and (d) and substitutes a new paragraph 6(c). The effect of the new paragraph 6(c) is to provide that the annual statement to contributors must not include, or be included with, a written notice of premium increases.