James Bidgood (Dawson, Australian Labor Party) Share this | Hansard source

The Private Health Insurance Legislation Amendment Bill 2008, which I support, contains measures that will amend the Australian Securities and Investments Commission Act 2001, the Corporations Act 2001, the Insurance Act 1973, the Insurance Contracts Act 1984 and the Private Health Insurance Act 2007. The proposed legislation will remove the requirement for dual regulation, which will come into effect from 1 July 2008, of health related business conducted through health benefit funds by the Private Health Insurance Administration Council and the Australian Prudential Regulation Authority. This bill is primarily about cutting red tape and allowing innovation, while ensuring the industry continues to be appropriately regulated. By insisting on appropriate regulation by the Private Health Insurance Administration Council and on the delivery of the sensible measures contained in this bill, the government is showing that it is working with the industry and for consumers. Dual regulation is not advantageous to the industry. The industry does not want dual regulation and government does not want it either. Ensuring that the Private Health Insurance Administration Council remains the sole regulator of health related business operated through a health benefit fund is in everybody’s best interest.

Under the act as it stands, the Private Health Insurance Administration Council is the sole regulator, but only until 1 July 2008. After that, health related business conducted through health benefit funds will be subject to dual regulation, which we see as being unnecessary. This legislation will continue the practice as it stands right now by extending the temporary situation to a permanent one and it will ensure that the Private Health Insurance Administration Council remains the sole regulator for health related business. This bill also stipulates that, by 1 January 2010, those four of the 38 health insurers that are registered bodies and not companies as defined by the Corporations Act must become companies under the Corporations Act. This is important for regulation, as the Private Health Insurance Administration Council could have difficulty regulating entities that are registered bodies because registered bodies need only meet limited standards for directors’ duties. This measure will boost accountability standards and governance requirements for all existing and potential new health funds. This is a big win for consumers and for accountability. The four funds that are required to become companies have been informed and specifically consulted about the requirements of the bill. The bill proposes certain stamp duty exemptions for private health insurers seeking to become registered companies pursuant to the Corporations Act.

Health related business includes goods and services to manage or prevent diseases, injuries or conditions that are not health insurance business. Importantly, it is a product for people who are not eligible for Medicare to cover health services provided for in Australia. The bill also clarifies that health insurers may offer premium discounts to corporate employee groups without offending the community rating provision. An expansion of people taking on targeted corporate rates is a win for both insurers and the insured. This provides clarity to the industry and consumers and encourages more people to take on each attractive corporate discount, potentially saving customers hundreds of dollars a year and increasing membership numbers for funds.

To conclude, this bill eases the administrative burden of double regulation, this bill provides clarity and, best of all, this bill continues the provision of having a single regulator. The bill allows insurers to conduct pilot projects of cover for targeted groups of fund members without offending the community rating provision, encouraging innovation in the industry. These measures will be welcomed by a great many people in my electorate including, but not limited to, international university students studying at the Central Queensland University at Mackay and the James Cook University in Townsville, students residing in southern Townsville and international tourists to such places as the Whitsundays. This is good news also to overseas residents living and working in my electorate, not covered by Medicare and having health insurance. I commend the bill to the House.

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