Keith Pitt (Hinkler, National Party) Share this | Link to this | Hansard source

My constituency question is to the Minister for Health, Aged Care and Sport. Minister, I have been contacted by Snow Addison of Hervey Bay in regards to substantial increases in the cost of private health insurance. Can the minister please inform the House what steps the government is taking to address the rising cost of private health insurance premiums, particularly for seniors?

Sussan Ley (Farrer, Liberal Party, Minister for Health) Share this | Link to this | Hansard source

I thank the member for Hinkler for his question and reflect on my visit to his constituents and on their very strong concerns about affordability when it comes to health spending—something we have front and centre of everything we do.

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

I have asked the member for Sydney to cease interjecting.

Sussan Ley (Farrer, Liberal Party, Minister for Health) Share this | Link to this | Hansard source

I hear continually from consumers like Snow about the rising cost of their private health insurance. In fact, in premiums tend to rise at double the rate of inflation, over seven per cent a year. What consumers tell me is that they are not confident that they are getting value for money. So our focus is on what we can do to provide a product, in consultation with everyone who has an interest in private health insurance, that meets their needs.

We have released a modest online survey—met with howls of protest from the opposition. My comment to the Labor Party would be: why are they so afraid of us asking consumers what they want and what they think? This online survey has already attracted thousands of responses, not hundreds of responses but thousands of responses.

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Sydney is now warned.

Sussan Ley (Farrer, Liberal Party, Minister for Health) Share this | Link to this | Hansard source

I encourage everyone who is now becoming aware of this consultation to have their say. It is so important when we consider last year 500,000 Australians dumped or downgraded their private health insurance and the numbers who have health insurance is flat lining. People are disappointed with the product, they are wanting us to do better and we can. I want to make this point: who benefits from private health insurance? The answer is that every single Australian benefits because a strong private health insurance sector supports a strong public health insurance sector so it is important for every single Australian that we have our say and we take interest.

In response to more silly scare campaigns from Labor, I want to make two points: we are not moving to an American-style managed care system and we are not moving to a UK style risk-based private health insurance system. We are doing neither of those things. What I am interested in, on behalf of the people of Australia, is a private health insurance product that looks after them, that meets their needs and, overall, provides very good care in hospital, not some of the junk products that we are seeing, not some of the lack of transparency where consumers are saying, 'I do not understand what I have signed up for and I'm disappointed that is not meeting my needs.' We invite everyone, Labor especially, to join us in this very important consultation built like everything we do in the health system around the consumer, the patient and the carer.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.