Explanatory Memorandum
Circulated by authority of the Minister for Health and Ageing, the Honourable Nicola Roxon MPSchedule 4 - Corporate products
Private Health Insurance Act 2007
Item 1 At the end of section 55-5
Item 1 adds a new subsection (4) at the end of section 55-5 of the Act to specify that, despite subsection 55-5(2) of the Act, a private health insurer who discriminates on the basis of employment does not improperly discriminate to the extent that the effect of the discrimination is that the premiums payable under an insurance policy are discounted (providing that the premiums meet the requirements in section 66-5 of the Act).
Item 1 also adds a new subsection (5) at the end of section 55-5 of the Act to clarify that the discrimination described in new subsection 55-5(4) is improper discrimination if the insurer directly or indirectly causes the insurance policy to be cancelled for the reason that a person ceases to be employed by, or under contract to provide services to, a particular employer.
Schedule 5 - Pilot projects
Private Health Insurance Act 2007
Item 1 At the end of Division 55
Item 1 adds a new section 55-15 at the end of Division 55 of the Act specifying that the principle of community rating in section 55-5 is not breached if a private health insurer discriminates for the purpose of conducting a pilot project in accordance with the Private Health Insurance (Complying Product) Rules.
Item 1 also adds a new subsection 55-15(2) to the Act providing that Private Health Insurance (Complying Product) Rules can be made to permit pilot projects of a kind specified in the Private Health Insurance (Complying Product) Rules to be conducted by private health insurers in accordance with the requirements specified in the Private Health Insurance (Complying Product) Rules.