Treasury has released an Exposure Draft Private Health Insurance (Prudential Supervision) Bill 2015 (Exposure Draft Bill) for the regulation of private health insurers, administered by APRA, following the proposed cessation of the Private Health Insurance Administration Council (PHIAC) as a separate body.
The Exposure Draft Bill replicates elements of the regime currently set out in the Private Health Insurance Act 2007 (PHI Act) with some modifications to harmonise certain provisions with other legislation administered by APRA.
The Exposure Draft Bill deals with:
- the registration of private health insurers and the obligations of registered insurers;
- the regulation of health benefits funds, including in relation to restructure, merger, acquisition and termination of health benefits funds; and
- APRA’s supervision of private health insurers, including establishing prudential standards and directions and APRA’s enforcement powers.