Australian Private Health Insurers

Health insurance reform bills re-introduced

David Jacobson — Thu, 19 Nov 2009 22:08:40 +0000

On 19 November 2009 the Government re-introduced its reform package:

Fairer Private Health Insurance Incentives (Medicare Levy Surcharge - Fringe Benefits) Bill 2009 [No. 2]
Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 [No. 2]
Fairer Private Health Insurance Incentives Bill 2009 [No. 2]

The Explanatory Memoranda are here, here and here.

UPDATE: The Bills were defeated by a majority vote in the Senate on 24 February 2010.

Health service providers are not credit providers

David Jacobson — Thu, 19 Nov 2009 20:21:35 +0000

In L v Health Service Provider [2009] PrivCmrA 15 a patient complained to the Privacy Commissioner when his payment default for health services was listed in his consumer credit information file. While the complainant had failed to pay for the medical procedure, the Commissioner considered the health service provider did not have a sufficient credit relationship with the complainant, and was not a credit provider in accordance with Determination No. 2006-2.

The Commissioner formed the view that the health service provider had interfered with the complainant’s privacy by listing a payment default when it was not a credit provider in respect of the debt. In response to the complainant’s claim that the payment default prevented them from obtaining finance, the health service provider apologised, removed the payment default, and ceased its practice of reporting overdue accounts to a credit reporting agency. The complainant also accepted a confidential financial settlement.

Health Insurance Act 1973 updated

David Jacobson — Wed, 21 Oct 2009 00:46:20 +0000

ComLaw has published a consolidated Health Insurance Act 1973 which includes the latest amendments.

Private Health Insurance Legislation Amendment Bill (No. 2) 2009

David Jacobson — Mon, 19 Oct 2009 21:59:18 +0000

The Private Health Insurance Legislation Amendment Bill (No. 2) 2009 is currently before Parliament.

It allows for the conditional listing of prostheses in the Private Health Insurance (Prostheses) Rules (Prostheses Rules) and requires the Minister for Health and Ageing to make rules specifying criteria for listing prostheses in the Prostheses Rules.

The Parliamentary Library has published a digest of the Bill here.

New PHIAC governance standards to commence 1 January 2010

David Jacobson — Sun, 11 Oct 2009 22:21:09 +0000

The Private Health Insurance (Insurer Obligations) Rules 2009 repeal the Private Health Insurance (Insurer Obligations) Rules 2007 and establish prudential standards for private health insurers that set minimum requirements for the governance arrangements of private health insurers, specify appointed actuary requirements of private health insurers and detail reporting and notification requirements for private health insurers.

The new Rules commence on 1 January 2010.

The Governance Standards are set out in Schedule 1.

Fairer Private Health Insurance Incentives Bill 2009 defeated in Senate

David Jacobson — Thu, 10 Sep 2009 21:51:55 +0000

ABC News reports that the Government intends to re-introduce the Fairer Private Health Insurance Incentives Bill 2009 in 3 months after its defeat in the Senate on 9 September.

Senate report on private health insurance changes

David Jacobson — Wed, 05 Aug 2009 20:24:46 +0000

The Senate Community Affairs Committee has tabled its report titled “Fairer Private Health Insurance Incentives Bill 2009 and two related bills“

National Health Act updated

David Jacobson — Sat, 01 Aug 2009 19:14:30 +0000

ComLaw has issued a consolidated National Health Act containing the latest amendments relating to the provision of pharmaceutical, sickness and hospital benefits, and of medical and dental services.

Clarification of PHIAC independent director provisions

David Jacobson — Mon, 27 Jul 2009 03:53:12 +0000

PHIAC has issued a circular to clarify the position of PHIAC regarding director independence as it relates to private health insurers in corporate group structures.

Following initial feedback and to avoid doubt, PHIAC proposes that Schedule 1, section 1(7) be amended to remove any doubt that independent directors of the parent company and/or the board of another subsidiary of the parent company will not lose their independent status by reason of those directorships.

This requirement does not, however, remove from the board of the private health insurer the need to comply with the independence criteria as detailed in the definition of an independent director in Rule 4 of the draft standard.

Updated private health insurer corporate governance toolkit

David Jacobson — Mon, 27 Jul 2009 03:45:04 +0000

We have updated our 52 page Toolkit to help private health funds implement the governance standards.

The Toolkit explains:

•what corporate governance means
•what your board needs to do
•what policies and documents you need to prepare
•constitution changes
•corporate governance reporting
•board succession
Call David Jacobson on 07 3878 5098 or email djacobson at langes dot com dot au if you’d like to discuss issues that concern you.