Summary

Part of a package of five bills to create a regime for the prudential regulation of private health insurers, the bill: transfers the prudential supervisory functions from the Private Health Insurance Administration Council to the Australian Prudential Regulation Authority (APRA); provides for the registration of private health insurers and prohibits unregistered entities from carrying on a health related business; requires private health insurers to have health benefit funds; provides that APRA approves restructures, mergers, acquisitions and terminations of health benefit funds; empowers APRA to appoint an external manager of a health benefit fund; outlines duties and liabilities of directors; enables APRA to establish prudential standards and to exercise powers under the standards; outlines obligations of private health insurers; provides for the monitoring and investigation of private health insurers; provides that APRA can obtain an enforceable undertaking from a person in connection with a matter in relation to which APRA has a power or function; provides that APRA may seek remedies for a contravention of an enforceable obligation; provides for the Administrative Review Tribunal to review decisions made by APRA; and sets out matters in relation to approvals, determinations and rules.