Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A private health insurer must increase the amount of premiums payable for * hospital cover in respect of an * adult if, after the adult's * lifetime health cover base day, the adult ceases to have hospital cover.
(2) The amount of the increase is worked out as follows:
where:
"base rate" is the * base rate for the * hospital cover.
"years without hospital cover" is the number obtained by:
(a) dividing by 365 the number of days (other than * permitted days without hospital cover), after the first day on which subsection (1) applied to the * adult, on which he or she did not have * hospital cover; and
(b) rounding up the result to the nearest whole number.
(3) Any increase under this section in the amount of premiums payable for * hospital cover is in addition to any increase under section 34 - 1 in the amount of premiums payable for that hospital cover.