Document ID: chunk:federal_register_of_legislation:C2005C00239:clause:1_58
Version: federal_register_of_legislation:C2005C00239
Segment Type: clause
Provision Reference: sch 1 cl 58
Character Range: 65127–66968

58  Subclause 1(2) of Schedule 2
Repeal the subclause, substitute:

 (2) The amount of the increase is worked out as follows:
where:

base rate is the amount of contributions that would be payable for that hospital cover in respect of an adult beneficiary in respect of whom:
 (a) contributions are not increased under this Schedule; and
 (b) contributions are not decreased through providing financial benefits under a loyalty bonus scheme implemented in accordance with paragraph (ma) of Schedule 1; and
 (c) a discounted rate of contribution is not payable in accordance with paragraph (s) of Schedule 1.

lifetime health cover age, in relation to an adult beneficiary who takes out hospital cover after his/her Schedule 2 application day means:
 (a) if the beneficiary took out hospital cover before the 1 July next following the beneficiary's birthday—the beneficiary's age immediately before that birthday; and
 (b) if the beneficiary took out health cover on or after the 1 July next following the beneficiary's birthday—the beneficiary's age on that birthday.

Example: Bill turns 36 years of age on 2 March 2004:

(a) he takes out hospital cover, for the first time, on 1 April 2004. Since he has taken the cover before the 1 July next following his birthday, he is treated as having a lifetime health cover age of 35. If the hospital cover has a base rate of $1,000 per year, the amount of the increase in the base rate under this clause is therefore as follows:

(b) alternatively, he takes out hospital cover, for the first time, on 1 September 2004. Since he has taken the cover after the 1 July next following his birthday, he is treated as having lifetime health cover age of 36. If the hospital cover has a base rate of $1,000 per year, the amount of the increase in the base rate under this clause is therefore as follows: