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2 April 2013
Private Health Insurance Amendment (Lifetime Health Cover and Other Measures) Bill 2012
The purpose of this circular is to respond to comments from industry on the proposed application of the Private Health Insurance Amendment (Lifetime Health Cover and Other Measures) Bill 2012
(the Bill) to premiums paid for a period of hospital cover after the commencement date of the Bill. If enacted, the Bill will commence on 1 July 2013.
The Department is aware of private health insurers’ concerns over their ability to implement the measure for premiums paid after 1 July 2013, for a period of hospital cover prior to 1 July 2013.
The Department is of the view, subject to passage of the legislation, that the new LHC Rebate arrangements will apply to premiums paid on or after 1 July 2013 where any part of that cover
, to which the premium relates, includes one or more days on or after 1 July 2013. For example, if a person pays a $100 premium on 20 July 2013 for a period of hospital cover for a month in arrears (20 June 2013 – 20 July 2013) and is subject to a LHC loading, the LHC loading component of the premium would not be used to calculate the Rebate. The new
LHC Rebate arrangements apply in full to that premium paid on or after 1 July 2013.
Where premiums are paid on or after 1 July 2013, in respect of a period of hospital cover that only includes days before 1 July 2013, the existing arrangements apply so that any LHC loading would be included for the purposes of calculating the Rebate.
If there are any comments regarding this circular, industry can contact the Department via email to Private Health
If you require further information please telephone: (02) 6289 9853/24 hr answering machine or email the enquiry to Private Health Insurance Branch
For more information visit 2013 Private Health Insurance (PHI) Circulars
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