• “4.6 The initial Contract for Partnership Discount must be for a minimum of 1 complete Cover Period of 1 year. However, on the expiry of that initial term, the Contract may be extended from time to time by agreement but no 1 extension may be for longer than 3 Cover Periods.”

“Step 2: From that is to be deducted:

• “– bulk health costs as referred to in paragraph 6.7A; and

• “– administrative costs as referred to in paragraph 6.5.

“Step 3: The balance, after step 2, is to be treated as being for:

• “– prudential reserves; and

• “– claim entitlement and case management expenses; and

• “– primary health costs (being those costs not already allowed for under PHC).”

• “6.7A The Manager remains liable to meet bulk health costs (BHC) including public health acute services. BHC is to be fixed by the Manager from year to year based (to the extent reasonably practicable) on the following formula:

  

  “The estimated figures are to be the subject of paragraph 21. The Accredited Employer's contribution to bulk health costs is achieved by the impact of BHC on the discount calculated under paragraph 6.7”

• “7.6 The initial Contract for Full Self Cover must be for a minimum of 1 complete Cover Period of 1 year. However, on the expiry of that initial term, the Contract may be extended from time to time by agreement but no 1 extension may be for longer than 3 Cover Periods.”

“10A High Cost Claim Cover

• “10A.1 For the purposes of this paragraph 10A, event means a discrete and time-bound incident (which therefore does not include any gradual process) that results in entitlements under the Act for 1 or more employees.

  “10A.2 An employer under a Contract for Full Self Cover may elect to purchase from the Manager the right to seek reimbursement if the costs of the aggregated entitlements arising from a single catastrophic event for which the Accredited Employer has liability under the Accreditation Agreement exceed the agreed level of excess under paragraph 10A.3. The costs to be aggregated are the direct costs of the claims arising out of the event and do not include indirect costs such as claims management costs.

  “10A.3 The level of excess may be 1 of the following:

  • “(a) $250,000; or

  • “(b) $500,000; or

  • “(c) a level above $500,000 agreed by the Manager and the Accredited Employer in the particular case.

  “10A.4 The option available under this paragraph 10A may be purchased by an employer only for an entire Cover Period and on giving the Manager notice in writing before the close of 31 December preceding the start of the Cover Period for which the option is to take effect.”

• “– F_ELC

• “– F_FSC”

“25 Goods and services tax excluded

• “(1) Unless this Framework otherwise provides, if this Framework requires the calculation of dollar amounts or costs, the calculation does not include any goods and services tax payable.

  “(2) This paragraph is for the avoidance of doubt.

“26 Amendments available at end of Cover Period

• “26.1 If a Contract for Partnership Discount or a Contract for Full Self Cover has at least 1 full Cover Period to run, the employer under that Contract may, on giving the Manager notice in writing, seek to—

  • “(a) reduce the duration of the Contract by specifying the Cover Period (which may include the current Cover Period) at the close of which the Contract will terminate; or

  • “(b) change from the existing Plan to the other Plan by specifying the Cover Period (which may include the current Cover Period) at the close of which the Plan will change.

  “26.2 If a Contract for Partnership Discount or a Contract for Full Self Cover is in its final Cover Period, the employer under that Contract may, on giving the Manager notice in writing, seek to renew the Contract for 1 or more Cover Periods.

  “26.3 All notices under paragraphs 26.1 and 26.2 must be given before the close of 31 December preceding the start of the Cover Period for which the change is to take effect.

  “26.4 If an employer ceases to be an Accredited Employer as a result of reducing the duration of the Contract, that employer may not become an Accredited Employer again unless 2 years have elapsed or the Manager agrees to the employer becoming an Accredited Employer again.”