Regulation Impact Statement – Department of Health
On 28 March 2018, the Government introduced three Bills into the Parliament as part of implementing reforms to private health insurance announced by the Government on 13 October 2017.
The Private Health Insurance Legislation Amendment Bill 2018, the A New Tax System (Medicare Levy Surcharge – Fringe Benefits) Amendment (Excess Levels For Private Health Insurance Polices) Bill 2018 and the Medicare Levy Amendment (Excess Levels for Private Health Insurance Policies) Bill 2018 seek to make private health insurance policies more understandable and provide better value to consumers, while also helping to reduce costs for health insurers.
The Office of Best Practice Regulation (OBPR) assessed the Regulation Impact Statement (RIS) prepared by the Department of Health as compliant with Australia Government RIS requirements, but not best practice. The RIS was assessed as falling short of best practice because it did not present a range of feasible options and the level of analysis did not clearly demonstrate how the preferred option would result in a net benefit for consumers, private health insurers and the community.
The Department estimates the revised framework will increase regulatory costs by $5.1 million a year. The OBPR agreed to this estimate.