Commonwealth Numbered Regulations - Explanatory Statements

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PRIVATE HEALTH INSURANCE INCENTIVES REGULATIONS 1998 1998 NO. 375

STATUTORY RULES 1998 NO. 375

Issued by authority of the Minister for Health and Aged Care

Private Health Insurance Incentives Act 1998

Private Health Insurance Incentives Regulations 1998

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

The Private Health Insurance Incentives Act makes provision for, amongst other matters, private health insurance funds to participate in the new premium reduction scheme which delivers the 'Government's 30% rebate through reduced private health insurance premiums.

Subsection 14-15 (1) provides that the Minister must approve the application of a fund to participate in the premium reduction scheme. Subsection 14-15 (2) provides that the Minister must not approve an application by a health fund to participate in the premium reduction scheme, if the health fund failed to comply with conditions for participation that are prescribed by the proposed Regulations.

The Regulations set out the conditions of participation by private health insurance funds in the premium reduction scheme with which the funds must comply before the Minister can approve a health fund as a participating fund.

Under the Regulations funds must comply with the following conditions of participation:

*       provide annual statements to all contributors stating the dollar amount of premium they have paid, or are deemed to have been paid and the dollar amount they have received under the 'Government's 30% rebate'; .

*       provide a written undertaking at the time of applying to participate in the premium reduction scheme for the next financial year, an annual statement to contributors by 30 June, as stipulated above, for the current financial year;

*       when providing these statements, only information that relates directly to the rebate is to be included in the statement or mailed with the statement;

*       when advising contributors of premium increases, the funds must inform them that the 'Government's 30% rebate' has also increased and what their new rebate amount will be; and

*       in all forms of advertising, which make reference to the rebate, the funds must use the term, the 'Government's 30% rebate'; 4 (2) (c).

The Regulations commenced on 1 January 1999.