Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. The cost of private health insurance has never been higher. So why won't the Prime Minister support Labor's plan to cap private health insurance increases, which will save Australian families an average of $340? Why won't the Australian Prime Minister use his power to help Australian families, instead of protecting big private health insurance companies?

Mr Pyne interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Leader of the House will cease interjecting. The Prime Minister has the call.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The Leader of the Opposition's intentions are perfectly plain, and they were very clear when he spoke at the Press Club last week. When he was asked whether he was going to abolish or restrict further the private health insurance rebate, twice he had the opportunity to say that he was not and that he supported it. He failed to do so. We know what Labor are about. They hate the private health system, they hate private hospitals, they hate patients having choice, they hate people who want to put some money into health insurance to help take care of themselves. They hate that enterprise and that initiative. They have done everything they can to undermine the private health system. This is another typically cynical move by the Labor Party, all soundbite and no substance. In government, Labor cut $4 billion from the rebate and means tested it. Now they want to take an axe to private health insurance with a 16 per cent increase in premiums by abolishing low-cost products and slashing the rebate. That will put up premiums, push people out of private health and into the public system and increase waiting lists in a way that will prejudice and disadvantage millions of families.

One of the most important things when people buy health insurance is that they know the health insurer can fund their treatment when they call upon it. That is why APRA, the Prudential Regulatory Authority, supervises the conduct of private health insurance sector—as they do also the insurance sector generally and in particular private health insurance. The representatives of the private healthcare industry, on 4 February, made this point—and it's a very powerful one and worthy of reflection by honourable members opposite, many of whom I imagine have their private health insurance covered by smaller, union-based, employee-based private health insurance schemes. This is what the industry said:

An enforced premium pathway will put at risk a number of small, employee-based and regional mutual health funds who are already close to breaching prudential reserves. These health funds have been serving their local communities for decades and this election-focused policy will directly threaten their future and competition in the sector. With this level of interference bankruptcies will occur.

They added:

Further, the Opposition Leader should explain how Labor intends to override APRA's strict prudential requirements.

Mr Speaker, we've seen an increase in the premiums, the lowest since 2001—of course, we'd like it to be lower still—but the opposition leader's cynical move will only disadvantage millions of families.