Document ID: chunk:federal_register_of_legislation:F2024C01114:clause:7_9aa:p5
Version: federal_register_of_legislation:F2024C01114
Segment Type: clause
Provision Reference: sch 7 cl 9AA (pt 5/6)
Character Range: 35288–38030

to be a retained age‑based discount policy; and
 (iii) the person was not a dependent child under the old policy;
  the person's discount assessment date under the old policy.
eligible person, in relation to an age‑based discount policy, means a person to whom a discount applies in accordance with paragraph 11B (c).
retained age‑based discount policy means an insurance policy:
 (a) that is an age‑based discount policy; and
 (b) that states that it is a retained age‑based discount policy.

11B. Requirements for age‑based discount policy to be complying health insurance policy
  For paragraph 63‑10 (g) of the Act, an insurance policy must not provide for an age‑based discount (the discount) unless:
 (a) the policy covers:
 (i) hospital treatment; or
 (ii) hospital treatment and general treatment; and
 (b) the discount will be a reduction in the amount that would otherwise be payable by the person for the policy, equal to the dollar amount calculated in accordance with rule 11C; and
 (c) the discount will apply to each person insured under the policy who, on the discount assessment date for the person:
 (i) was within one or more ranges of ages, between 18 and 29 (inclusive), that are specified in the policy as eligible for the discount; and
 (ii) was not a dependent person under the policy; and
 (d) while age‑based discounts are available under the policy, the discount will continue to apply until it is reduced, in accordance with rule 11C, to zero in relation to each such person insured under the policy; and
 (e) the policy states whether it is a retained age‑based discount policy.
Note: For paragraph (c), an insurer is not required to provide discounts for all ages between 18 and 29 (inclusive).

11C. Calculation of age‑based discount
Note: This rule deals only with the calculation of the age‑based discount. The premium that is payable in respect of a particular insurance policy is also affected by other provisions of the Act (including Part 2‑3 of the Act, which deals with lifetime health cover) and rules made under the Act (including these Rules).
 (1) For paragraph 11B (b), the total age‑based discount that applies under an age‑based discount policy for a particular period is equal to the sum of the applicable discounts to which each eligible person who is insured under the policy is entitled for that period.
 (2) An eligible person is entitled to an applicable discount calculated in accordance with the following formula:

  where:
applicable percentage, for a particular period, is the greater of:
 (a) the person's percentage for the period, determined in accordance with the table to subrule (3); and
 (b) zero.
base rate for hospital cover is the amount of premiums that would be payable