Ken Ticehurst (Dobell, Liberal Party) Share this | Hansard source

One of the greatest risks we are facing in our health industry in Australia is that if the Leader of the Opposition becomes the Prime Minister, 43 per cent of Australians will lose private health insurance because Labor will get rid of the 30 per cent rebate. That has the potential to destroy the private health industry. This would be an absolute shame for Australia; it is something the government is not prepared to do. It would also place an additional load on our already overloaded public health system.

I have had private health insurance since my first job after I left school. In those days, we had HCF for hospital and MBF for medical benefits only. I recently had a hip replacement operation and, because I had private health insurance, NIB paid almost $20,000 for that; it cost me $200. We hear all the cries from the opposition about how expensive health insurance is, but the reality is that, when you need to have time in a hospital, if you are insured you can go to a private hospital and it will cost you very little. I could have paid additional premiums and not even had to pay that $200, but I elected to pay that. The Australian government is committed to private health insurance and wants to make it available to all Australians. Australians should be able to decide for themselves whether or not they want health insurance. As I have illustrated with my case, it is to everybody’s benefit to have that private health insurance.

It is the government’s view that the private health sector makes a vital contribution to the national level of health services. The Howard government’s commitment to choice has eased the pressure on the public system. By encouraging more people to take out private health insurance, we are improving the capacity of public hospitals to service local communities. In fact, 56 per cent of all surgery is now performed in private hospitals. If you require emergency surgery, you are unlikely to get into a public hospital because of the extensive waiting lists. If you are privately insured, you can get into a private hospital very quickly indeed.

In my electorate, public hospitals are stretched to capacity thanks to the New South Wales Labor government, which is entirely out of touch with the needs of our community. Hardworking staff regularly have to endure the frustration of not being able to admit patients and struggle with the chaos of choked emergency departments while treating anxious patients and trying to reassure their families. This is an everyday occurrence at both Wyong Hospital and Gosford Hospital. This is not acceptable by any standard, and I am sure that Central Coast residents will express their concerns with the state government in the upcoming state election.

The Private Health Insurance Bill 2006 and cognate bills will only help to ease the burden on public hospitals, as more and more people will opt for private health insurance. Commonsense and initiative, such as the increased rebate for older Australians and Lifetime Health Cover, have helped this government to reverse the trend of a decline in private health insurance while Labor was last in office. When Labor came to power in 1983, 65 per cent of Australians had private health cover. Over their 13 years in government, that figure almost halved, falling to less than 34 per cent. Now, thanks to the Howard government’s measures, that figure has jumped to over 43 per cent and is increasing.

I know many senior residents in my electorate have welcomed the higher rebate, which is making private health insurance more affordable and providing peace of mind. Many older Australians have contributed to private health insurance for most of their adult lives. They contributed in their younger years while enjoying good health. Now, when they need private health insurance cover, it is important that premiums remain affordable.

Similarly, Lifetime Health Cover has been well-received. It provides incentives, such as lower premiums, for all Australians who take out private health insurance cover and stick with it over the longer term. It helps to slow premium increases and helps to stop the hit-and-run syndrome of people joining a private health insurance scheme only to leave after a particular ailment has been overcome. Lifetime Health Cover is great news for the private health insurance system and for the wider health sector. This bill includes a major change to Lifetime Health Cover. People who have retained their private hospital insurance continuously for more than 10 years will no longer be subject to the Lifetime Health Cover penalties. This recognises and rewards the effort that people have made to maintain their cover over time, having first joined at the age of 30 years. They have made the effort and they deserve credit for their commitment and loyalty.

Efficiently run health funds mean lower overheads and less pressure on premiums. This bill includes significant regulatory reforms. The aim of these changes is to make private health regulation clearer and simpler, to help health insurers to run their businesses more smoothly and to work with service providers to devise new products that better meet consumer needs. Of course, Labor continue to oppose private health insurance cover just for the sake of opposing things. They like to pretend private health insurance is a service that is only for the rich, but that is not true. Through policies like Lifetime Health Cover and the 30 per cent rebate for older Australians, 44 per cent of the population, some of whom are earning around $20,000 a year, now have private health insurance cover. The average earning Australian is now able to choose to take out private health insurance if they wish. A decade ago, we did not have the luxury of that choice. The private health insurance rebate saves a typical family something in the order of $800 a year, a benefit that I am sure families in my electorate who have private health insurance appreciate.

The task of revitalising the private health sector is ongoing. These bills tailor health care to the realities of the 21st century. For instance, care does not always centre on being admitted to hospital. Day procedures, outpatient services, hospital in the home, condition management and wellness and prevention are all part of the healthcare equation in a way that simply was not envisaged when the current regulatory regime was devised over half a century ago. These things are inadequately covered by private health insurance as it is currently regulated. This needs changing.

These bills provide for the operation of the government’s private health insurance measures, which were announced by Minister Abbott on 26 April 2006. These measures are designed to increase competition in the industry and improve services to insured persons by allowing insurers to provide policies that reflect contemporary clinical practice. These measures will also simplify the private health insurance regulatory regime, as existing legislation is regarded by the private health industry as outdated and difficult to interpret. These measures are the result of extensive consultation with the private health insurance industry. Since the announcement in April, there has been extensive consultation on the shape and direction of the legislation and further consultation on matters of detail.

It is important to note that these measures will not diminish the government’s strong commitment to Medicare, despite what members opposite would like people to believe. It will not result in a two-tier system. The Private Health Insurance Bill will allow insurers to offer benefits for out-of-hospital services under broader health cover, require insurers to provide standard information to consumers, amend Lifetime Health Cover, introduce safety and quality standards for insured services and change the focus of regulation from insurance providers to insurance products.

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