Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Full Day's HansardDownload Full Day's Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Wednesday, 4 March 1970

The Government has decided to substantially adopt the proposals contained in recommendations 32 and 33 of the Nimmo Committee. These relate to the financial reserves of registered health insurance funds. In future, a policy will be applied under which the 'free' reserves of the larger funds - that is, reserves in excess of amounts held against unpresented claims and contributions paid in advance - will generally be limited to the equivalent of 3 months' contribution income. In the case of smaller funds, more flexibility will be allowed and their 'free' reserves may be permitted to exceed that level in appropriate circumstances.

Under the new one table medical insurance arrangements and the proposed three table hospital insurance scheme, all funds in any particular State will pay the same rates of benefits but contribution rates will be flexible, depending on a particular fund's financial experience. On this basis, any excess reserves accumulated by a fund will be used to provide lower contribution rates or to provide higher benefits as the need arises, without increasing contribution rates. The efficiency and economy of fund operations will thus be reflected in their contribution rates.

Suggest corrections