Private Health Insurance (Incentives) Amendment Rules (No. 1) 2020
I, Brian Kelleher, delegate of the Minister for Health, make the following rules.
Dated 30 March 2020
Brian Kelleher
Private Health Insurance Branch
Medical Benefits Division
Department of Health
Contents
1 Name...................................................2
2 Commencement............................................2
3 Authority................................................2
4 Schedules................................................2
Schedule 1—Amendments 3
Private Health Insurance (Incentives) Rules 2012 (No. 2)
1 Name
This instrument is the Private Health Insurance (Incentives) Amendment Rules (No. 1) 2020.
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information | ||
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument | 31 March 2020 | 31 March 2020 |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
This instrument is made under section 333-20 of the Private Health Insurance Act 2007.
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Private Health Insurance (Incentives) Rules 2012 (No. 2)
[1] Rule 5A
Repeal the rule, substitute:
5A. Rebate Adjustment Factor
For the purposes of paragraph 22-15(5E) of the Act the rebate adjustment factor is determined according to the following formula:
a) For the adjustment year commencing on 1 April 2020:
RAF = 1
b) For all other adjustment years:
RAF = CPI factor for the relevant adjustment year
1 + Average premium increase for the relevant adjustment year
Where:
RAF = rebate adjustment factor expressed as a factor to 3 decimal places (rounding up where the fourth decimal place is 5 or more).
CPI factor for the relevant adjustment year is the number worked out by dividing the CPI index number for the December quarter immediately preceding that year by the CPI index number for the December quarter preceding the first mentioned December quarter expressed as a factor to 4 decimal places (rounding up where the fifth decimal place is 5 or more).
CPI index number for a quarter is the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.
Average premium increase for the relevant adjustment year means the figure published by the Department of Health during the course of an adjustment year that represents the industry average premium increase (including rate protection and the age-based discount factor) being the average change in premiums for each product subgroup offered by every private health insurer, weighted according to the number of people covered under complying health insurance policies in each product subgroup, expressed as a factor to 4 decimal places (rounding up where the fifth decimal place is 5 or more).