PHI 26/16

Page last updated: 12 April 2016

PDF version: PHI 26/16 - Private Health Insurance and Norfolk Island (PDF 103 KB)

PHI 26/16 - Private Health Insurance and Norfolk Island
12 April 2016

As advised in Circular PHI 24/15, from 1 July 2016 the Private Health Insurance Act 2007 will apply to Norfolk Island. Norfolk Island will be included in the same risk equalisation jurisdiction as New South Wales/Australian Capital Territory (NSW/ACT).

In accordance with community rating, all open private health insurance products offered in NSW/ACT will be available for purchase by Medicare eligible residents of Norfolk Island. Premium prices will be the same as in NSW/ACT.

In preparation for this change, insurers should:

  • review and update any of its rules relating to Norfolk Island
  • advise its customer service network accordingly
  • be aware that from 1 July 2016, any Australian citizens and permanent residents who are resident on Norfolk Island will have 12 months to decide whether to take out a private health insurance policy without incurring a Lifetime Health Cover loading in the future.

More general information about the Norfolk Island reforms can be found at: http://regional.gov.au/territories/norfolk_island/reforms/index.aspx.

Existing membership requirements for restricted access insurers continue unchanged.

Norfolk Island Risk Equalisation Jurisdiction Rule Changes

The Private Health Insurance Legislation Amendment (Risk Equalisation Jurisdiction) Rules 2016 was registered with the Federal Register of Legislation and commences on 1 July 2016 (FRL No: F2016L00492).

These Rules amend the Private Health Insurance (Health Benefits Fund Policy) Rules 2015 and Private Health Insurance (Risk Equalisation Policy) Rules 2015 to add Norfolk Island into the risk equalisation jurisdiction of NSW/ACT.

Details of the amendments are set out in the Private Health Insurance Legislation Amendment (Risk Equalisation Jurisdiction) Rules 2016 and Explanatory Statement which are available at:
https://www.legislation.gov.au/Details/F2016L00492