House debates

Wednesday, 8 April 2020

Questions without Notice

Private Health Insurance

2:52 pm

Photo of Chris BowenChris Bowen (McMahon, Australian Labor Party, Shadow Minister for Health) Share this | | Hansard source

My question is to the Prime Minister. Private health insurers will save up to $5½ billion from the deferral of non-urgent services over the next six months. Those savings far outweigh the small amount that's been returned to policyholders via the six-month premium freeze. What's the government doing to ensure that those savings are returned to Australians doing it tough and not pocketed by the insurers?

Photo of Scott MorrisonScott Morrison (Cook, Liberal Party, Prime Minister) Share this | | Hansard source

I'll ask the Minister for Health to add further to this question. You rightly note that policyholders have had the benefit of a reprieve from those companies. I think it's very important, as we continue to work through these many issues, that wherever possible we try not to look at these issues as a contest or a conflict between interests here and that we try and encourage others to come to the table in good faith and not to second-guess their motives wherever possible. That will be subject to the normal tests that I think will exist in the public space. But it has not been apparent to me that the private health insurance companies have engaged in bad faith in this process and nor would I expect them to do so. If they were to do so, then the government would obviously take steps to ensure that that was remedied. With that introduction, I'm happy for the Minister for Health to add further.

2:53 pm

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for Health) Share this | | Hansard source

Thanks very much, Prime Minister and the member for McMahon. One of the things that we've been very focused on is ensuring that we are working with the private health insurers as well as the private hospitals. I've already had the opportunity to address private hospitals during question time. I have spoken at length with the leaders of both the large and the small private health insurer organisations—Members Health for the small and Private Healthcare Australia for the large—as well as with many leaders within this particular sector. They have responded, and I know they have also spoken with the Prime Minister's Office. The Prime Minister's Office has provided a very clear and strong message that they expect the private health insurers to step up. But they have already taken steps.

I've not heard that figure, and I would want to respectfully check the figure which the member has set out. I do know that after the discussions they chose a very significant measure of waiving the increases. I do know that individual insurers are making very significant provisions for hardship and supporting individuals. In addition to that, one of the things we are always looking to do is to make sure that we have not just a sustainable public health system but a sustainable private system. We are expecting a very significant surge in elective surgery after the virus has passed. There will be ebbs and flows. We'll seek further advice on those figures you've raised. If the member has that detail, I'd be interested to receive it. But I would say this: all of the insurers that I spoke with are, above all else, focused on provision of support for those Australians who have that need to ensure that hardship packages and additional support are addressed during the course of the coronavirus period.