Nick Sherry (Tasmania, Australian Labor Party, Shadow Minister for Banking and Financial Services) Share this | Hansard source

My question is to the Minister for Finance and Administration, Senator Minchin. Does the minister recall saying that a privatised for-profit Medicare private would put downward pressure on premiums through greater efficiencies? Is the minister aware that, of the current providers, the eight funds with the lowest administrative costs are not-for-profit funds? Don’t two of the three for-profit funds have higher administrative costs than Medibank Private? Haven’t health experts also made it clear that a privatised Medibank will lead to higher premiums because the owner would need to deliver higher dividends to offset the risks in the industry? Isn’t it the case that the minister’s claim of lower premiums in a privatised Medibank is an expression of ideology that is not supported by the evidence? Why won’t the minister release a business case to support his assertion that privatising Medibank will result in lower premiums?