Private Health Insurance Legislation Amendment Act 2014 (Cth)

Private Health Insurance Legislation Amendment Act 2014

No. 26, 2014

An Act to amend the law relating to private health insurance, and for related purposes

Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Amendments Part 1—Main amendments of the Private Health Insurance Act 2007 Private Health Insurance Act 2007 Part 2—Repeal of the Private Health Insurance Legislation Amendment (Base Premium) Act 2013 Private Health Insurance Legislation Amendment (Base Premium) Act 2013 Part 3—Other amendments Private Health Insurance Act 2007

Private Health Insurance Legislation Amendment Act 2014 No. 26, 2014

An Act to amend the law relating to private health insurance, and for related purposes

[Assented to 9 April 2014]

The Parliament of Australia enacts:

1 Short title This Act may be cited as the Private Health Insurance Legislation Amendment Act 2014.

2 Commencement This Act commences on the day this Act receives the Royal Assent.

3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Part 1—Main amendments of the Private Health Insurance Act 2007

Private Health Insurance Act 2007

1 Subsections 22‑15(2), (3) and (4) Omit "mentioned in subsection (1)", substitute "specified in subsection (1) (as affected by subsection (5A))".

2 After subsection 22‑15(5) Insert:

Annual adjustment of percentages (5A) For each adjustment year, each percentage specified in subsection (1), (2) or (3) is replaced by the percentage worked out as follows: (a) for the adjustment year starting on 1 April 2014—multiply the specified percentage by the adjustment factor for the adjustment year; (b) for a later adjustment year—multiply the specified percentage, as worked out under this subsection for the preceding adjustment year, by the adjustment factor for the later adjustment year. (5B) Percentages are to be worked out under subsection (5A) to 3 decimal places (rounding up if the fourth decimal place is 5 or more). (5C) The percentages worked out under subsection (5A) for an adjustment year apply in relation to premiums, or amounts in respect of premiums, that were paid, or that are payable, at any time in the adjustment year. (5D) Each of the following is an adjustment year: (a) the period of 12 months starting on 1 April 2014; (b) the period of 12 months starting on each later 1 April. (5E) The adjustment factor for an adjustment year is to be determined in accordance with the Private Health Insurance (Incentives) Rules. However, if the factor so determined for an adjustment year is more than 1, the adjustment factor for that year is instead taken to be 1.