Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Hansard source

In respect of the decision to convert Medibank to a for-profit government business enterprise, subject to approval from the Private Health Insurance Administration Council, the government has decided to do just that. After the conversion Medibank will, of course, pay tax and dividends. This move will assist in positioning Medibank to operate more efficiently and compete effectively on a level playing field with other for-profit health insurers such as the MBF and BUPA. The government expects that the conversion will provide Medibank with greater flexibility in the pursuit of effective business strategies as well as encouraging greater competition between major health insurers. Therefore, it will assist in keeping downward pressure on premiums. In addition, the Medibank board is supportive of the conversion. It has advised that the conversion will not affect members and, critically, will not put upward pressure on premiums. The Medibank board has assured the government that there will be no change to staff conditions as a result of the conversion. (Time expired)