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14 February 2014
Private Health Insurance Rebate Weighted Average Ratio From 1 April 2014
From 1 April 2014, a person’s rebate contribution from the Australian Government will increase based on a Weighted Average Ratio (WAR) which represents the difference between the Consumer Price Index (CPI) and the industry weighted average increase in premiums. The weighted average ratio is set in the Private Health Insurance (Incentives) Rules1
The CPI factor for 2014 is 1.0275
Industry weighted average premium increase for 2014 (including rate protection) is 6.20%
The WAR for 2014 is 0.968
Under the current legislation, an industry level approach applies through the use of the WAR. The WAR will result in 96.8% of the premium paid (excluding Lifetime Health Cover loadings) attracting a rebate.
Enquiries by insurers on the claiming of the Rebate should be referred to the Department of Human Services on 1300 554 463.
Enquiries by insurers on the MLS should be referred to the ATO helpline on 13 2861.
Other enquiries in relation to the information in this circular should be directed to Private Health
If you require further information please telephone: (02) 6289 9853/24 hr answering machine or email the enquiry to Private Health Insurance Branch
For more information visit 2014 Private Health Insurance (PHI) Circulars
Changing your e-mail address? No longer want circulars? Please email Private Health Insurance Branch
1Transitional arrangements have been made through the Private Health Insurance (Complying Product) Amendment Rules 2013 (No.5) and the Private Health Insurance (Incentives) Amendment Rules 2013 (No. 1). Following the passage of the Private Health Insurance Legislation Amendment Bill 2013 through Parliament, the Rebate Adjustment Factor will permanently replace the WAR.