Tony Abbott (Warringah, Liberal Party, Leader of the House) Share this | Hansard source

I did. Currently, the ombudsman’s power is limited in relation to investigation and mediation of disputes. He receives and investigates complaints but only has formal jurisdiction to resolve them in respect of disputes with funds. This frustrates consumers, who have no clear alternative path of redress.

The private health sector is a partnership between health funds and health care providers, including hospitals, doctors and ancillary service providers. It is not appropriate to impose close scrutiny on one part of the sector—namely, the funds—while not applying the same rigor consistently to the providers of services for which the funds pay benefits to their members.

This bill therefore aims to ensure that the ombudsman will be able to effectively represent consumer interests arising from all aspects of their privately insured experience. Currently, the ombudsman’s powers centre on complaints and investigations relating to the activities of health funds. The bill expands the responsibilities of the ombudsman to include receiving complaints by, and in relation to, health care providers and health insurance brokers. This effectively imposes the same obligations on all parties involved in a privately insured episode, instead of placing accountability solely on health funds.

The ombudsman will not intervene in matters of clinical care: that remains—and must remain—the province of registration boards and state health care complaints commissioners.

The bill also expands the types of documents of which the ombudsman can require production, such as health fund, health care provider and broker records.

The ombudsman will have a power to compel parties to a dispute to undertake mediation where he deems it appropriate. This may include deadlocks in contract disputes between health funds and providers.

The ombudsman can currently make recommendations about the practices and procedures of health funds. This bill expands this power to the practices and procedures of health care providers and brokers.

Penalties will be included for parties, other than consumers, who fail to comply with matters relating to providing records, participating in mediation and reporting to the ombudsman. These penalties are in line with the penalties that currently exist in the National Health Act 1953 and will provide support to the ombudsman in relation to complaints and investigations. Furthermore, the bill ensures that the ombudsman and the staff of his office are protected from civil and personal liability as a result of their proper exercising of the increased powers.

Peak bodies of the private health industry, including the Australian Health Insurance Association, the Australian Medical Association and the Australian Private Hospitals Association were consulted in the development of the bill, and I am advised that all support the proposed changes.

The bill also includes a minor amendment to the Private Health Insurance Incentives Act 1998 that applies to the 2005-06 financial year and later financial years.

This is an administrative amendment that extends the time Medicare Australia—the former Health Insurance Commission—has to provide annual data to the Australian Taxation Office on the private health insurance rebates from 90 days to 120 days. The change will improve administration of the rebates and will not disadvantage those consumers who claim their rebates through their tax return. This proposed change follows a recommendation of the Australian National Audit Office.

I commend the bill to the House.

Debate (on motion by Mr Gavan O’Connor) adjourned.

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