Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Health, Minister Nash. Last week the government announced changes to private health insurance which the Prime Minister promised would 'make private health insurance affordable'. What guarantee can the minister provide that premiums will be cheaper as a result?

Fiona Nash (NSW, National Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

I thank the senator for her question. I commend the health minister for the very wide ranging package of health reforms we saw last week, including the work around the private health insurance reform. This is an area where we're looking to reform to make private health insurance simpler and more affordable for Australians. It's interesting to note that as part of that the insurers have given written guarantee that every dollar will be passed on to lowering premiums—in answer to the senator's question.

I think it's very important that we look at the simplification of the system—moving, obviously, to gold, silver, bronze and basic standards—to make it much clearer for consumers to traverse the sometimes complicated private health insurance sector. After consultation with the private health insurance and medical sectors, the government has agreed to stop the Commonwealth rebate for a range of natural therapies—such as Bowen therapy, Rolfing and reiki—which was a key recommendation, I note, from the Chief Medical Officer. One thing we won't do, though, is Labor's plan to abolish basic coverage, which would remove the choice for pensioners and lower income families.

We are very proud of this reform, and I think again the health minister has been very comprehensive last week in bringing forward the range of health reforms that he has. Families and older Australians are going to benefit from these reforms in particular, and we note that, for the coalition, families and older Australians and their access to health care are a key priority. So I am very pleased to be able to stand here today and make some comments around the private health insurance reform—again, a key initiative from the coalition government, delivering for the Australian people.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Brown, a supplementary question

Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

I note the minister did not provide that guarantee that premiums will be cheaper. Private health insurance groups have admitted that the changes will shave just $34 from an expected $200-a-year premium hike next year. Does the minister agree the changes may reduce premium increases by as little as 65c per week for a family? Is this what the Prime Minister meant by making insurance affordable?

Fiona Nash (NSW, National Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

No, I don't agree, and I refer the senator to my previous answer, where I did refer to the fact that insurance had given a written guarantee. An agreement with the Medical Technology Association of Australia was struck, passing on $1 billion in savings directly to consumers. I answered the senator's question directly in my previous answer.

I would say it is this coalition government that is focused on ensuring we deliver good, equitable and affordable health care for people right across the country, and that includes within the area of private health insurance reform. It is because this government is focused on ensuring that we do that that we have seen the announcement for last week and we have seen the benefits that are going to be passed through to Australian consumers. We have seen this as a result of direct action around private health insurance reform for the Australian people.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Brown, a final supplementary question.

Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

Following the announcement, some private health insurers have warned that premiums next year will still rise by more than four per cent. Can the minister explain to families and older Australians how another $200 rise in premiums next year is making their private health insurance affordable?

Fiona Nash (NSW, National Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

Making private health insurance affordable is something that is key to Australian people. Again, I draw the senator's attention to the answers that I have given previously around the guarantees for affordability.

But isn't it interesting that those opposite again choose to find an opportunity to be critical about things that are negative for the Australian people? What we have seen last week from the health minister is a very positive announcement in relation to private health insurance reform which has been very well received not only by the Australian people but also by the sector, and it would be rather beneficial if those on the other side could occasionally be more a little more productive and positive around the issues where we are delivering for the Australian people. We are delivering real reform around private health insurance, which the Australian people will benefit from.

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

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