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HEALTH INSURANCE AMENDMENT ACT 1991 No. 171 of 1991 - SECT 6

Indexation
6. Section 10A of the Principal Act is amended:

   (a)  by omitting from subsection (1) the definition of `year' and
        substituting the following definition:

" `year' means:

   (a)  for the purpose of the indexation of the amount specified in
        subparagraph 10(2)(c)(ii) - the year beginning on 1 November 1993 or a
        later year beginning on 1 November; or

   (b)  for the purpose of the indexation of the amount of the greatest
        permissible gap - the year beginning on 1 November 1992 or a later
        year beginning on 1 November; or

   (c)  for the purpose of the indexation of the safety-net amount - the year
        beginning on 1 January 1993 or a later year beginning on 1 January; or

   (d)  for the purpose of the indexation of the maximum co-payment amount -
        the year beginning on 1 November 1993 or a later year beginning on 1
        November; or

   (e)  for the purpose of the indexation of the amount payable to a
        practitioner under section 20C - the year beginning on 1 November 1993
        or a later year beginning on 1 November.
Note 1: greatest permissible gap is defined in subsection 10(5).";

   (b)  by omitting subsection (2) and substituting the following subsection:

"(2) The amount referred to in an item in the CPI Indexation Table below is to
be indexed under this section every year on the indexation day specified in
that item by using the reference quarter in that item.
CPI INDEXATION TABLE
 Item     Amount              Indexation     Reference quarter

day
1. The amount specified in subparagraph
10(2)(c)(ii)                  1 November      June

2. The amount of the greatest permissible
gap                           1 November      June

 3. The safety-net amount     1 January       September

 4. The maximum co-payment    1 November      June
amount
5. The amount payable to a practitioner
under section 20C             1 November      June".


   (c)  by omitting from subsection (5) the definition of "Previous index
        number" and substituting the following definition:

" `Previous index number', in relation to the indexation of an amount referred
to in an item in the CPI Indexation Table in subsection (2), means the index
number for the reference quarter in that item immediately before the most
recent reference quarter in that item ending before the indexation day.". 


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