PRIVATE HEALTH INSURANCE INCENTIVES ACT 1998

CHAPTER 2 - THE INCENTIVE PAYMENTS SCHEME  

PART 2 - ENTITLEMENT TO, AND CALCULATION OF, PAYMENTS UNDER INCENTIVE PAYMENTS SCHEME  

Division 4 - Entitlement to, and calculation of, payments  

SECTION 4-12   SAVING PROVISION WHERE A PERSON 65 YEARS OR OVER CEASES TO BE COVERED BY POLICY  

4-12(1)    
This section applies to a person (the first person ) at a particular time (the relevant time ) if:

(a) at any time before the relevant time, the first person was covered by an * appropriate private health insurance policy (the original policy ), other than as a * dependent child ; and

(b) at any time when the person was so covered, the amount payable under this Chapter was 35% or 40% of the amount of premium payable under the original policy because of the age of another person (the entitling person ) covered by the policy; and

(c) before the relevant time, the entitling person ceased to be covered by the original policy.

4-12(2)    
If, at the relevant time:

(a) the first person is covered by an * appropriate private health insurance policy (which may be either the original policy or another policy); and

(b) each other person (if any) covered, since the entitling person ceased to be covered by the original policy, by an * appropriate private health insurance policy that also covered the first person:

(i) is or was covered as a * dependent child ; or

(ii) is a person who was covered by the original policy immediately before that cessation;

subsections 4-10(5) and (6) are taken to apply (other than for the purposes of working out the * incentive amount ) as if the entitling person:

(c) were covered by the policy mentioned in paragraph (a); and

(d) were the same age as at that cessation.

4-12(3)    
Subsection (2) does not apply if its application would result in the amount payable under subsection 4-10(5) or (6) being less than it would otherwise have been.