David Pocock (ACT, Independent) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Health and Aged Care, Minister Gallagher. It's been reported in the Financial Review today that talks are starting on health insurance premium increases. Recently I had a Canberran tell me that, even with private health insurance, he was charged $20,000 out of pocket for prostate cancer treatment. I've had another tell me that they were stung $3,000 for life-saving radiotherapy. A knee replacement in the ACT is around $3,000 more expensive than the Australian median. Why should Canberrans, or any Australian, cop an increase in their insurance premiums when the private system is failing to deliver value and cover the cost of routine procedures?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Pocock for the question. Let me be clear: I think people in the ACT do pay too much for access to private healthcare treatment. That's been a longstanding problem here in the ACT. It's one that I tried to focus on when I was in the assembly and continue to focus on.

It essentially comes down to a lack of competition in the private medical market here. We're a small market. We don't have the number of health professionals operating privately that some of the other jurisdictions have. But it is a real problem, and it does deserve a lot more scrutiny than it's getting. Canberrans pay a lot more than what their fellow Australians in other jurisdictions, including small jurisdictions, pay for private health cover. In fact, we have the highest private health insurance coverage in the country and the lowest utilisation of it, and some of that has to be linked to the prices that people pay for out-of-pocket expenses.

The focus that we've been having in health is to repair the damage that was done under Peter Dutton's work when he was the health minister, to make sure that we're investing in Medicare, that we're improving bulk-billing, that we're providing cheaper medicines and that we are ensuring Medicare urgent care clinics and other parts of Medicare are actually working. Bulk-billing, for example, was in a freefall when we inherited it. We're starting to turn that around. There is more to do here.

But I agree with Senator Pocock that the out-of-pocket costs, which are related to but not completely at the hand of the private health insurers, require a lot more scrutiny, including what people are paying here in the ACT. I would encourage them to shop around when they are getting their referrals to see if they can get lower prices from other medical professionals.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, first supplementary?

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

I'm glad you agree, Minister. I'm concerned that none of the measures you've mentioned relate to the cost of surgery. I'm interest in what actions the government will take to protect Australians from outrageous gap fees and to ensure that they actually receive some value from their private health insurance, given we have a system that forces people into having private health insurance.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

In terms of surgery, we have a very good public health system, but, in some areas, there are waits for people. For medical treatment, that is why some people go private, because they can get their surgery done faster than waiting on the public list. But I would say that, in this country, we do have an excellent public health system that provides services to anyone, regardless of their background or need. That is important to understand.

The other thing is the work we're trying to do for medical professionals, those private specialists, to publish their fees so that people can see, at the earliest opportunity, the going rates. The doctors haven't been as fast as we would like to upload some of that information, and I think we need to continue to put more pressure on there.

In terms of the private health insurance and any increase there, we need to make sure that any increases are reasonable in line with escalating costs.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, a second supplementary?

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

We know that the public system is clogged. There are over 500,000 people in the public system on the surgery waiting list, 3,000 in the ACT. Only half of people needing semiurgent surgery are seen on time in the ACT. Is there any plan from the government to rein in increases to insurance premiums when people aren't seeing value from their private health insurance?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Certainly the work the government does on an annual basis scrutinises this. I cannot recall off the top of my head the last increase, but it was a modest increase to private health insurance. This is something the minister looks at carefully and takes a range of advice on.

The prices some private specialists charge are over and above even the responsibility of the private health insurer—for those out-of-pocket costs on top of or above the scheduled fee for these procedures. That is a decision of the doctors providing that service. I know, having been through it recently here in the ACT, the charges for my family member were a hundred times what the scheduled fee was. So there is a problem, and it needs further scrutiny about what can be done, particularly here in the ACT, where people often charge double what the costs are in places like Sydney or Melbourne or, indeed, Adelaide. (Time expired)