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Private Health Insurance Act 2007
34‑1 Increased premiums for person who i34‑1 Increased premiums for person who is late in taking out hospital cover
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34‑1 Increased premiums for person who is late in taking out hospital cover
(1) A private health insurer must increase the amount of premiums payable for *hospital cover in respect of an *adult if the adult did not have hospital cover on his or her *lifetime health cover base day.
(2) The amount of the increase is worked out as follows:
where:
base rate, for *hospital cover, is the amount of premiums that would be payable for the cover if:
(a) the premiums were not increased under this Part; and
(b) there was no discount of the kind allowed under subsection 66‑5(2).
lifetime health cover age, in relation to an *adult who takes out *hospital cover after his or her *lifetime health cover base day, means the adult’s age on the 1 July before the day on which the adult took out the hospital cover.