2004-2005-2006 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Private Health Insurance (Collapsed Organization Levy) Amendment Bill 2006 No. , 2006 (Health and Ageing) A Bill for an Act to amend the Private Health Insurance (Collapsed Organization Levy) Act 2003, and for related purposes [Page Break] 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Schedule(s) ........................................................................................ 2 Schedule 1--Amendments 3 Private Health Insurance (Collapsed Organization Levy) Act 2003 3 [Page Break] 1 Insurance (Collapsed Organization Levy) Act 2003, 2 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 (Collapsed 6 Organization Levy) Amendment Act 2006. 7 2 Commencement 8 (1) Each provision of this Act specified in column 1 of the table 9 commences, or is taken to have commenced, in accordance with 10 column 2 of the table. Any other statement in column 2 has effect 11 according to its terms. 12 13 Private Health Insurance (Collapsed Organization Levy) Amendment Bill 2006 No. , 2006 1 [Page Break] Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 The day on which this Act receives the and anything in Royal Assent. this Act not elsewhere covered by this table 2. Schedule 1 1 April 2007. 1 April 2007 Note: This table relates only to the provisions of this Act as originally 1 passed by both Houses of the Parliament and assented to. It will not be 2 expanded to deal with provisions inserted in this Act after assent. 3 (2) Column 3 of the table contains additional information that is not 4 part of this Act. Information in this column may be added to or 5 edited in any published version of this Act. 6 3 Schedule(s) 7 Each Act that is specified in a Schedule to this Act is amended or 8 repealed as set out in the applicable items in the Schedule 9 concerned, and any other item in a Schedule to this Act has effect 10 according to its terms. 11 [Page Break] Schedule 1--Amendments 2 3 Private Health Insurance (Collapsed Organization Levy) Act 4 2003 5 1 Title 6 Omit "collapsed organization levy on registered health benefits 7 organizations", substitute "collapsed insurer levy on private health 8 insurers". 9 2 Section 1 10 Omit "Organization", substitute "Insurer". 11 Note: This item amends the short title of the Act. If another amendment of the Act is 12 described by reference to the Act's previous short title, that other amendment has effect 13 after the commencement of this item as an amendment of the Act under its amended 14 short title (see section 10 of the Acts Interpretation Act 1901). 15 3 Section 5 (definition of capital adequacy requirements) 16 Repeal the definition. 17 4 Section 5 (definition of capital adequacy standard) 18 Repeal the definition. 19 5 Section 5 20 Insert: 21 collapsed insurer means a private health insurer, in respect of at 22 least one of whose health benefits funds (within the meaning of the 23 Private Health Insurance Act 2006) at least one of the following 24 paragraphs applies: 25 (a) the Council has approved the termination of the health 26 benefits fund under section 149-10 of the Private Health 27 Insurance Act 2006; 28 (b) the Council has appointed an external manager of the health 29 benefits fund under section 217-10 of the Private Health 30 Insurance Act 2006; 31 [Page Break] 1 a terminating manager of the health benefits fund under 2 section 220-5 of the Private Health Insurance Act 2006. 3 6 Section 5 4 Insert: 5 collapsed insurer levy means a collapsed insurer levy imposed 6 under section 7. 7 7 Section 5 8 Insert: 9 collapsed insurer levy day means a collapsed insurer levy day 10 specified in a determination under section 7. 11 8 Section 5 (definition of collapsed organization) 12 Repeal the definition. 13 9 Section 5 (definition of collapsed organization levy) 14 Repeal the definition. 15 10 Section 5 (definition of collapsed organization levy day) 16 Repeal the definition. 17 11 Section 5 18 Insert: 19 complying health insurance policy has the same meaning as in the 20 Private Health Insurance Act 2006. 21 12 Section 5 (definition of Council) 22 Omit "National Health Act", substitute "Private Health Insurance Act 23 2006". 24 13 Section 5 (definition of National Health Act) 25 Repeal the definition. 26 14 Section 5 27 Insert: 28 [Page Break] 1 Health Insurance Act 2006. 2 15 Section 5 (definition of registered health benefits 3 organization) 4 Repeal the definition. 5 16 Section 5 (definition of solvency requirements) 6 Repeal the definition. 7 17 Section 5 (definition of solvency standard) 8 Repeal the definition. 9 18 Section 6 10 Repeal the section, substitute: 11 6 Purpose of imposing collapsed insurer levy 12 The purpose of imposing a collapsed insurer levy is to help meet a 13 collapsed insurer's liabilities to the people insured under its 14 complying health insurance policies that it is unable to meet itself. 15 19 Section 7 16 Repeal the section, substitute: 17 7 Imposition of collapsed insurer levy 18 (1) If: 19 (a) a private health insurer is a collapsed insurer; and 20 (b) the Minister determines, by legislative instrument, that this 21 section applies to the insurer; 22 collapsed insurer levy is imposed on each private health insurer 23 (other than an exempt insurer) on each collapsed insurer levy day 24 for the levy determination. 25 Note: Section 8 deals with exempt insurers. 26 (2) The Minister may determine, by legislative instrument, the day that 27 is, or the days that are, to be the collapsed insurer levy day or days 28 for the levy determination. 29 [Page Break] 1 Repeal the section, substitute: 2 8 Exempt insurers 3 (1) A private health insurer is an exempt insurer in relation to a levy 4 determination if: 5 (a) it is the collapsed insurer; or 6 (b) the Minister determines, by legislative instrument, that the 7 insurer is an exempt insurer. 8 (2) The Minister may make a determination under paragraph (1)(b) if 9 the Minister is satisfied that imposing the collapsed insurer levy on 10 the insurer would have a significantly adverse effect on the 11 insurer's ability to comply with: 12 (a) the solvency standard under Division 140 of the Private 13 Health Insurance Act 2006 or a solvency direction given to 14 the insurer under section 140-20 of that Act; or 15 (b) the capital adequacy standard under Division 143 of the 16 Private Health Insurance Act 2006 or a capital adequacy 17 direction given to the insurer under section 143-20 of that 18 Act. 19 21 Subsection 9(1) 20 Omit "organization" (wherever occurring), substitute "insurer". 21 Note: The heading to section 9 is altered by omitting "organization" and substituting 22 "insurer". 23 22 Paragraph 9(1)(a) 24 Repeal the paragraph, substitute: 25 (a) is determined by the Minister by legislative instrument; and 26 23 Subsection 9(2) 27 Omit "organization's liabilities to its contributors", substitute "insurer's 28 liabilities to people insured under its complying health insurance 29 policies". 30 24 Subsections 9(3) and (4) 31 Repeal the subsections, substitute: 32 [Page Break] 1 (a) must be based on the number of complying health insurance 2 policies that are on issue on the day determined by the 3 Minister, by legislative instrument, as the census day for the 4 levy day; and 5 (b) may be different for complying health insurance policies 6 under which different numbers of people are insured; and 7 (c) may be set at zero. 8 25 Subsection 10(1) 9 Omit "organization" (wherever occurring), substitute "insurer". 10 26 Paragraph 10(1)(f) 11 Omit "organization's liabilities to its contributors", substitute "insurer's 12 liabilities to people insured under its complying health insurance 13 policies". 14