Increased premiums for person who ceases to have hospital cover after his or her lifetime health cover base day
34-5 Increased premiums for person who ceases to have hospital cover after his or her lifetime health cover base day
A private health insurer must increase the amount of premiums payable for *hospital cover in respect of an *adult if, after the adult’s *lifetime health cover base day, the adult ceases to have hospital cover.
The amount of the increase is worked out as follows:
Start formula Years without hospital cover times 2% times *Base rate end formula
where:
base rate is the *base rate for the *hospital cover.
years without hospital cover is the number obtained by:
dividing by 365 the number of days (other than *permitted days without hospital cover), after the first day on which subsection (1) applied to the *adult, on which he or she did not have *hospital cover; and
rounding up the result to the nearest whole number.
Any increase under this section in the amount of premiums payable for *hospital cover is in addition to any increase under section 34‑1 in the amount of premiums payable for that hospital cover.
This Act’s bill:Explanatory memorandumSecond reading speech
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