Commonwealth Numbered Regulations - Explanatory Statements

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NATIONAL HEALTH AMENDMENT REGULATIONS 1999 (NO. 3) 1999 NO. 162

STATUTORY RULES 1999 No. 162

Issued by Authority of the Minister for Health and Aged Care

National Health Act 1953

National Health Amendment Regulations 1999 (No. 3)

Section 140 of the National Health Act 1953 (the Act) provides that the Governor-General may make Regulations prescribing matters that are required or permitted by the Act to be prescribed, or that are necessary and convenient to be prescribed for carrying out or giving effect to the Act.

Section 67 of the Act prohibits a person (other than a registered organisation) from carrying on health insurance business. The term "health insurance business" is defined in subsection 67(4) of the Act. In so far as is relevant, paragraph 67(4)(e) of the Act provides that health insurance business does not include business of a kind prescribed.

Regulation 48 of the National Health Regulations (the Principal Regulations) prescribes various types of business for the purposes of paragraph (c) of the definition of "health insurance business". To date, regulation 48 has been used to allow insurers that are not registered organisations under the Act to provide health insurance for certain situations/events that would otherwise fall within the standard definition of "health insurance business".

The amending regulations will prescribe Overseas Student Health Cover (OSHC) policies offered by a registered health benefits organisation under an agreement with the Commonwealth.

OSHC policies provide medical and hospital insurance for full fee paying overseas students and any accompanying or joining dependents. To the extent that they insure against fees for hospital treatment or ancillary health benefits OSHC policies would, but for the amending regulations, fall within the definition of "health insurance business" and would therefore be subject to the regulatory provisions contained in the Act. Some of these provisions, for example those giving effect to the community rating principle, are not appropriate for OSHC policies. The amending regulations therefore exclude from the definition of "health insurance business" OSHC policies offered by a registered health benefits organisation under an agreement with the Commonwealth. The agreement will set out the requirements pertaining to OSHC policies.

In addition to insuring against fees for hospital treatment and ancillary health benefits, OSHC policies will also be able to cover fees for professional services for which medicare benefits would otherwise be payable under the Health Insurance Act 1973.

The purpose of the regulations is to enable registered organisations (but not other insurers) to offer OSHC policies that are not subject to the provisions of the Act but which are subject to certain requirements set out in a contract with the Commonwealth.

Details of the regulations are set out in the Attachment.

The regulations commenced on Gazettal.

ATTACHMENT

Regulation 1 provides that the Regulations may be cited as the National Health Amendment Regulations 1999 (No. 3 ).

Regulation 2 provides that the Regulations commence on gazettal.

Regulation 3 provides that the National Health Regulations 1954 are amended by Schedule 1.

item 1 of Schedule 1 inserts a new subregulation 48 (2A). The new subregulation excludes, from the definition of "health insurance business" in subsection 67 (4) of the Act, insurance undertaken by a registered organisation under an overseas student health insurance contract.

Item 2 of Schedule 1 inserts a new subregulation 48(5) which defines the terms "overseas student" and "overseas student health insurance contract".