Melissa McIntosh (Lindsay, Liberal Party, Shadow Minister for Women) Share this | Link to this | Hansard source

I rise to speak on the Health Legislation Amendment (Improving Choice and Transparency for Private Health Consumers) Bill 2026. At the outset, I want to make the coalition's position clear. The coalition will not stand in the way of this bill passing the House. However, given the potential implications of these changes for our private health system, the coalition believes the legislation requires careful scrutiny through a Senate inquiry.

This bill makes two key changes to Australia's private health system. First, it introduces transparency by default, with amendments to allow the Department of Health, Disability and Ageing to publish information on the Medical Costs Finder about the medical fees charged by medical practitioners, including specialists and general practitioners, and the likely out-of-pocket costs patients will face through their private healthcare experience.

The second change contained in this bill focuses on regulating private health insurance premiums. It requires insurers to seek ministerial premium approval for new products and existing products where certain changes are proposed. The change broadly aligns with the current process for premium changes for existing products, whilst expanding ministerial oversight of premium setting for new private health insurance products. This change seeks to address the risk of product phoenixing, where an existing insurance product can be closed and then an identical or similar new product opened at a higher premium, skirting the requirement for premium change approval.

The coalition supports the concept of ensuring greater transparency in healthcare pricing and the need to help consumers make informed decisions about their health care. We also support sensible measures to ensure that Australians obtain better value from private health insurance. However, reforms in this area must be considered carefully. Australia's private health system plays a critical role in supporting our public hospitals. The two systems work hand in hand to ensure that all Australians have access to the health care they need. Importantly, the private health system relieves pressure on our public hospitals, something that could not be more critical right now, when we are seeing record levels of ambulance ramping and increasing waiting times at hospitals right across the country. That is why reforms in this area must be approached carefully, to avoid unintended consequences.

This debate is also occurring at a time when Australians are facing rising healthcare costs under Labor. The coalition recognises that high out-of-pocket costs for specialists are a major concern for many Australians, particularly as families struggle with the rising unaffordability of health care under this government. Labor's reckless spending and economic mismanagement are pushing up costs across the board, and health care is another victim of that. Not only has the out-of-pocket cost to see a GP skyrocketed to more than $50 under this government—the highest level on record—but out-of-pocket costs for specialist appointments are also spiralling out of control.

According to the government's own most recent Medicare data, for specialist attendances the bulk-billing rate is 28.2 per cent, with an average out-of-pocket cost of $123.48. For anaesthetists the bulk-billing rate is just 8.7 per cent, with an average out-of-pocket cost of $244.99. This is forcing Australians to make the difficult decision to avoid seeing a doctor, because they simply cannot afford it. Research conducted last year by Redbridge found that around 30 per cent of people who were referred to a medical specialist over the past three years did not attend because of concerns about cost. Australian families are now having to choose between seeing a doctor and paying the bills. This is a choice that no family should ever be forced to make.

On top of these pressures, the Albanese Labor government has now quietly imposed another cost increase on the 15 million Australians who rely on private health insurance, with premiums set to rise by 4.41 per cent during this cost-of-living crisis. This is the largest private health insurance premium rise in eight years and above the rate of inflation. At a time when household budgets are already under enormous pressure, this premium increase is another hit families simply cannot afford. At the worst possible time, Labor is slugging Australians with higher private health insurance premiums while families are already struggling to pay their bills. Once again, we see the real impact of Labor's broken promises on Australian families.

The Prime Minister waved around his Medicare card and told Australians it would be free to see a doctor. In reality, Australians are now facing the highest out-of-pocket costs to see a doctor on record, and those costs are only predicted to keep rising. Australians are seeing their cost-of-living, out-of-pocket healthcare costs and private health insurance premiums all rising under Labor. They are being forced to avoid accessing critical health care because of it, and this is a serious issue that the coalition is concerned will not be addressed by this bill.

The proposed amendments will allow the government to publish fee information on the Medical Costs Finder by using Medicare, hospital, and insurer billing data already held by government. While this seems reasonable, and improving transparency is a worthwhile objective, several issues require careful examination through a committee process. These include: the concerns raised by specialists, colleges and peak medical bodies about unintended consequences; concerns raised by private health insurers about the government overreach and prevention of innovative new products from being launched; the lack of information about what data will be captured by the bill, how it will be displayed and the timeliness of that information; and the broader drivers of rising out-of-pocket costs.

Most importantly, the government must recognise that, while increased transparency is a good thing, transparency alone will not address the spiralling out-of-pocket costs Australians are facing under Labor when they see a doctor. These issues should be carefully examined through a Senate inquiry, because this doesn't just impact Australians' hip pockets. If Australians are forced to drop or downgrade their private health insurance or if they delay accessing health care, it will inevitably worsen already-rising hospital wait times. It will add further pressure to elective surgery waitlists, and it will place additional strain on hospitals already dealing with serious bed-block issues caused by the Albanese government.

The coalition is proud of its record in ensuring we have a strong private health system working alongside our public hospitals. The former coalition government was successful in bringing private health insurance premium increases under control. We delivered the lowest annual premium change in two decades and the increases were progressively getting smaller. Under Labor, that trend has reversed. Premiums are now rising at the fastest rate in almost a decade. This is incredibly disappointing but unsurprising when you look at Labor's record on private health.

Australians remember that Labor cut the private health insurance rebate—a move that continues to hurt the affordability of private health insurance for millions of families. Who can forget former Labor health minister Tanya Plibersek proudly saying at a press conference: 'Every promise I made, I paid for. How did I pay for it? I paid for it by targeting private health insurance.' Whether it is stranding older Australians in hospital, allowing out-of-pocket costs to soar or standing by as private health insurance premiums surge, Labor has proven time and again it is determined to erode the choice, quality and affordability Australians deserve from their healthcare system.

Australians deserve choice, quality and timely access to health care. The coalition support greater transparency and a strong private health system because we know that leads to better outcomes for our public hospitals and all Australian patients. However, changes to the regulation of private health insurance and specialists must be carefully examined to avoid unintended consequences for consumers, patients and the broader health system. For that reason, while the coalition will support this bill in the House we believe it must be subject to further scrutiny through a Senate inquiry. This inquiry must investigate the spiralling out-of-pocket healthcare costs being overseen by this government, which this bill will not address. It is time for the Prime Minister to stop waving around his Medicare card and start addressing the rising affordability issues facing Australian patients because of his government's economic mismanagement.

Debate adjourned.