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Circular No 62
General PHIAC Circulars
Circular No 62
Contact Officers:
Gary Kennedy (02) 6285 3133
4 December 1996
NEW PHIAC 1 RETURN - EXCLUSIONARY TABLES - REINSURANCE SEU'S - REPORTING ON TIME - YEAR 2000
New PHIAC 1 return.
One purpose of this circular is to provide as early advice as possible of impending changes to the PHIAC 1 return. As all funds will be aware the Minister introduced two new categories of membership (single parent families and couples without dependants) announced within HBF Circular 463. Council intends to gather data about these membership categories. Therefore, the PHIAC 1 return will be changed from the March 1997 quarter to incorporate these categories of membership.
Obviously, the membership section of the return will be expanded, and the benefits section of the return are expected to be refined by the removal of the supplementary section (ie page 5). Other changes PHIAC is contemplating are:
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the removal of benefits paid by FED and Non-FED (page 3) while maintaining FED and Non-FED membership, and
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the inclusion of persons covered and benefits paid by age cohorts.
The new PHIAC 1 return will be distributed as soon as possible.
Reinsurance - treatment of exclusionary tables.
Enquiries have been made to PHIAC about the treatment of reinsurance in relation to exclusionary tables and the 35 day rule for reinsurance purposes. Specifically the question is "do days and benefits for hospitalisation under an exclusionary table count towards the 35 day rule when the hospitalisation is for a treatment excluded by the table?" In these circumstances the days and benefits do not count for the 35 day rule for the purposes of reinsurance.
Reinsurance - Single equivalent units (SEU's).
The Department of Health and Family Services have advised PHIAC that for the purposes of the reinsurance calculation the new categories of membership (ie couples and single parent families) will count as two SEU's. That is, all categories of membership, apart from single membership, will count as two SEU's. Single memberships will count as one SEU.
Financial Reporting and PHIAC 1 Reporting
The timeliness, completeness and accuracy of the above returns to PHIAC remain disappointing.
A number of annual financial accounts were submitted late, without extensions of time for submission having been granted, thereby delaying preparation of the annual report to Parliament. A number of returns were not completed in accordance with the Statement of Requirements for Reporting to PHIAC, or excluded some information specified by Circular 61.
Organisations are reminded that quarterly returns are to be submitted within four weeks of the end of the quarter. Annual financial accounts must be submitted by 30 September of each year.
The time limits imposed are not considered unreasonable, however organisations must ensure that the timing of annual meetings, and arrangements with auditors are made in sufficient time to enable compliance.
In the event an organisation is unable to comply with these time limits, application must be made in writing, for an extension of time prior to the expiry of the respective time limits.
Any organisation which fails to comply with the reporting requirements, or repeatedly submits inaccurate or incomplete data, will be named as non-complying in annual reports by PHIAC to Parliament, commencing with the 1996-97 Annual Report.
Impending arrival of the year 2000.
Funds are no doubt aware of the impact of the change of century on funds' computer systems. PHIAC wishes to remind all members of the industry that a strategy for system changes to cater for the change of century should be developed as soon as possible.