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Private Health Insurance Bill 2007

Part 6-7 Private Health Insurance Risk Equalisation Trust Fund

Division 318 Private Health Insurance Risk Equalisation Trust Fund

318-1   Private Health Insurance Risk Equalisation Trust Fund

                   The Health Benefits Reinsurance Trust Fund established under section 73BC of the National Health Act 1953 is continued in existence as the Private Health Insurance Risk Equalisation Trust Fund (the Risk Equalisation Trust Fund ).

318-5   Amounts to be paid into the Risk Equalisation Trust Fund

             (1)  The following amounts are to be paid into the * Risk Equalisation Trust Fund:

                     (a)  amounts appropriated by the Parliament for the purposes of the Fund;

                     (b)  amounts received from the States or Territories for payment to the Fund;

                     (c)  amounts of * risk equalisation levy received from private health insurers;

                     (d)  amounts of * late payment penalty received from private health insurers in respect of unpaid amounts of risk equalisation levy;

                     (e)  amounts received by the Council under paragraph 149-45(b) or because of section 149-50;

                      (f)  the proceeds from any investments made using Fund money.

             (2)  The Consolidated Revenue Fund is appropriated for the purposes of paragraphs (1)(b), (c), (d) and (e) to the extent that section 81 of the Constitution applies to the amounts mentioned in those paragraphs.

318-10   Operation of the Risk Equalisation Trust Fund

             (1)  The Private Health Insurance (Risk Equalisation Policy) Rules may set out requirements relating to how the * Risk Equalisation Trust Fund is to operate.

             (2)  Without limiting the matters that may be dealt with in those Rules, the Rules must specify:

                     (a)  the method for working out the amount to be paid out of the Fund to a private health insurer; and

                     (b)  the method for working out the amount to be paid into the Fund by private health insurers as * risk equalisation levy.

             (3)  If the Minister changes the Private Health Insurance (Risk Equalisation Policy) Rules, the Minister must notify the Council that the Minister has done so, as soon as practicable.

318-15   Administration of the Risk Equalisation Trust Fund

                   The Private Health Insurance (Risk Equalisation Administration) Rules may set out requirements relating to the administration of the * Risk Equalisation Trust Fund and the * risk equalisation levy, including:

                     (a)  the kinds of records to be kept by insurers who are required to pay risk equalisation levy; and

                     (b)  the form in which those records are to be kept.