2008 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Private Health Insurance Legislation Amendment Bill 2008 No. , 2008 (Health and Ageing) A Bill for an Act to amend the law in relation to private health insurance, and for related purposes [Page Break] 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Schedule(s) ........................................................................................ 1 Schedule 1--Health-related business 3 Australian Securities and Investments Commission Act 2001 3 Corporations Act 2001 3 Insurance Act 1973 3 Insurance Contracts Act 1984 4 Schedule 2--Restricted access insurers 5 Private Health Insurance Act 2007 5 Schedule 3--The requirement for private health insurers to be companies 6 Part 1--Amendments 6 Private Health Insurance Act 2007 6 Part 2--Transitional provisions 7 Schedule 4--Corporate products 8 Private Health Insurance Act 2007 8 Schedule 5--Pilot projects 9 Private Health Insurance Act 2007 9 [Page Break] 2 private health insurance, and for related purposes 3 The Parliament of Australia enacts: 4 1 Short title 5 This Act may be cited as the Private Health Insurance Legislation 6 Amendment Act 2008. 7 2 Commencement 8 This Act commences on the day on which it receives the Royal 9 Assent. 10 3 Schedule(s) 11 Each Act that is specified in a Schedule to this Act is amended or 12 repealed as set out in the applicable items in the Schedule Private Health Insurance Legislation Amendment Bill 2008 No. , 2008 1 [Page Break] 2 according to its terms. [Page Break] 2 Schedule 1--Health-related business 3 4 Australian Securities and Investments Commission Act 2001 5 1 Paragraph 12BAA(7)(d) 6 Repeal the paragraph, substitute: 7 (d) a contract of insurance (see subsection (9)) other than: 8 (i) health insurance provided as part of a health insurance 9 business (as defined by Division 121 of the Private 10 Health Insurance Act 2007); or 11 (ii) insurance provided as part of a health-related business 12 (as defined by section 131-15 of that Act) that is 13 conducted through a health benefits fund (as defined by 14 section 131-10 of that Act); 15 2 After paragraph 12BAA(8)(b) 16 Insert: 17 (ba) insurance provided as part of a health-related business (as 18 defined by section 131-15 of that Act) that is conducted 19 through a health benefits fund (as defined by section 131-10 20 of that Act); 21 Corporations Act 2001 22 3 After paragraph 765A(1)(c) 23 Insert: 24 (ca) insurance provided as part of a health-related business (as 25 defined by section 131-15 of that Act) that is conducted 26 through a health benefits fund (as defined by section 131-10 27 of that Act); 28 Insurance Act 1973 29 4 Subsection 3(1) (after paragraph (j) of the definition of 30 insurance business) 31 Insert: [Page Break] 2 of the Private Health Insurance Act 2007 carried on by a 3 private health insurer within the meaning of that Act through 4 a health benefits fund within the meaning of section 131-10 5 of that Act; or 6 Insurance Contracts Act 1984 7 5 After paragraph 9(1)(b) 8 Insert: 9 (ba) of insurance entered into, or proposed to be entered into, by a 10 private health insurer within the meaning of the Private 11 Health Insurance Act 2007 in respect of its health-related 12 business within the meaning of section 131-15 of that Act 13 that is conducted through a health benefits fund (as defined 14 by section 131-10 of that Act); or [Page Break] 2 Schedule 2--Restricted access insurers 3 4 Private Health Insurance Act 2007 5 1 Subsection 55-5(3) 6 After "constitution", insert "or *rules". 7 2 Subsection 126-20(6) 8 After "constitution", insert "or *rules". 9 3 Paragraph 185-5(e) 10 After "constitution", insert "or *rules". 11 4 Paragraphs 200-1(1)(e) and (2)(e) 12 After "constitution", insert "or *rules". [Page Break] 2 Schedule 3--The requirement for private 3 health insurers to be companies 4 Part 1--Amendments 5 Private Health Insurance Act 2007 6 1 Paragraph 126-10(1)(a) 7 Omit ", or a registered body within the meaning of that Act". 8 2 At the end of subsection 126-45(1) 9 Add: 10 ; or (c) on or after 1 January 2010, the insurer is not a company 11 within the meaning of the Corporations Act 2001. [Page Break] 2 Part 2--Transitional provisions 3 3 Applications for registration for which decisions are 4 pending 5 An application made before the commencement of this item for 6 registration as a private health insurer is taken, on that commencement, 7 not to be a valid application under section 126-10 of the Private Health 8 Insurance Act 2007 if, as at that commencement: 9 (a) the applicant was not a company within the meaning of the 10 Corporations Act 2001; and 11 (b) the Council had not decided the application under 12 section 126-20 of the Private Health Insurance Act 2007. 13 4 Exemption from stamp duty etc. relating to certain private 14 health insurers becoming companies 15 (1) Stamp duty, or any other tax, imposed under a law of a State or 16 Territory is not payable in relation to a thing done (including, for 17 example, a transaction entered into or an instrument or document made, 18 executed, lodged or given) for the purpose of, because of or as a result 19 of the registration of a body as a company if: 20 (a) the thing is done after the commencement of this item and 21 before 1 January 2010; and 22 (b) at the time the thing is done, the body is a private health 23 insurer; and 24 (c) the registration as a company is solely for the purpose of 25 avoiding the body's registration as a private health insurer 26 being cancelled under paragraph 126-45(1)(c) of the Private 27 Health Insurance Act 2007. 28 (2) In this item: 29 company means a company within the meaning of the Corporations Act 30 2001. 31 private health insurer means a person registered under Part 4-3 of the 32 Private Health Insurance Act 2007, and includes a body that is taken to 33 be a private health insurer because of section 18 of the Private Health 34 Insurance (Transitional Provisions and Consequential Amendments) 35 Act 2007. [Page Break] 2 Schedule 4--Corporate products 3 4 Private Health Insurance Act 2007 5 1 At the end of section 55-5 6 Add: 7 (4) Despite subsection (2), discrimination by a private health insurer is 8 not improper discrimination to the extent to which: 9 (a) the insurer: 10 (i) takes or fails to take an action; or 11 (ii) in making a decision, has regard or fails to have regard 12 to a matter; and 13 (b) taking or failing to take the action, or having regard or failing 14 to have regard to that matter, has the effect of the premiums 15 payable under an insurance policy that covers a person who 16 is: 17 (i) employed by a particular person or body; or 18 (ii) under contract to provide services to a particular person 19 or body; 20 being the subject of a discount or discounts (whether or not 21 the policy also covers one or more persons who are not so 22 employed and are not under such a contract); and 23 (c) the premiums meet the premium requirement in section 66-5. 24 (5) To avoid doubt, subsection (4) does not apply if taking or failing to 25 take the action, or having regard or failing to have regard to that 26 matter, has the effect of an insurance policy being cancelled 27 because a person ceases to be an employee of, or ceases to be 28 under contract to provide services to, a particular employer. [Page Break] 2 Schedule 5--Pilot projects 3 4 Private Health Insurance Act 2007 5 1 At the end of Division 55 6 Add: 7 55-15 Pilot projects 8 (1) The principle of community rating in section 55-5 does not prevent 9 a private health insurer from: 10 (a) taking or failing to take any action; or 11 (b) in making a decision, having regard or failing to have regard 12 to any matter; 13 for the purposes of conducting a pilot project in accordance with 14 the Private Health Insurance (Complying Product) Rules. 15 (2) The Private Health Insurance (Complying Product) Rules may 16 permit pilot projects of a kind specified in the Rules to be 17 conducted by private health insurers in accordance with 18 requirements specified in the Rules.