In a letter to all private health insurers, the Australian Prudential Regulation Authority (APRA), through executive director for enterprise services Steve Matthews, addressed matters in relation to the proposed supervisory levy for the private health insurance (PHI) industry.
APRA explained that for the first four years after the transition of PHIs to APRA, a four-year costing previously agreed with the Department of Finance was used to calculate the levy to be collected from private health insurers each year.
Since then, APRA has transitioned to a time-allocation methodology to identify the private health insurance levy total. A reduction of levies was extended to the industry for the three-year transitional period.
APRA announced that 2022-23 will be the first year the private health insurance industry is fully adopting its time-allocation methodology, consistent with other APRA-regulated industries. The proposed supervisory levy for private health insurers is $11.8m, compared to $9.9m in 2021-22. Before the transitional adjustments were made, the levy amount would have been $12.2m, APRA said.
