Private Health Insurance Act 2007

CHAPTER 2 - INCENTIVES  

PART 2-3 - LIFETIME HEALTH COVER  

Division 34 - General rules about lifetime health cover  

SECTION 34-5   INCREASED PREMIUMS FOR PERSON WHO CEASES TO HAVE HOSPITAL COVER AFTER HIS OR HER LIFETIME HEALTH COVER BASE DAY  

34-5(1)    
A private health insurer must increase the amount of premiums payable for ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

hospital cover in respect of an ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

adult if, after the adult ' s ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

lifetime health cover base day, the adult ceases to have hospital cover.

34-5(2)    
The amount of the increase is worked out as follows:

Years without hospital cover × 2% × ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

Base rate

where:

base rate
is the ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

base rate for the ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

hospital cover.

years without hospital cover
is the number obtained by:

(a) dividing by 365 the number of days (other than ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

permitted days without hospital cover), after the first day on which subsection (1) applied to the ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

adult, on which he or she did not have ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

hospital cover; and

(b) rounding up the result to the nearest whole number.

34-5(3)    
Any increase under this section in the amount of premiums payable for ^[*]

To find definitions of asterisked terms, see the Dictionary in Schedule 1 .

hospital cover is in addition to any increase under section 34-1 in the amount of premiums payable for that hospital cover.