Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Hansard source

I would like to thank members who contributed to the debate on this bill. The Private Health Insurance Legislation Amendment Bill 2013 simplifies implementation arrangements of the previous government's base premium measure.

The previous government's changes would have applied at a product level and would have effectively led to a different rebate for each policy type—cumbersome to administer and difficult for consumers to understand. This bill amends the Private Health Insurance Act 2007 to create a single adjustment factor under a legislative instrument. The rebate will be adjusted uniformly across all insurance policies each 1 April by a factor to be determined in accordance with the Private Health Insurance (Incentives) Rules. The adjustment factor will be a ratio representing the proportion of the increase in the consumer price index compared to the average private health insurance premium increase. Industry has advised that this bill will result in a significant administrative saving to the cost of implementing the previous government's base premium act. The bill is also making a minor amendment to clarify the definition of a 'restricted access group'.

In summary, this bill will reduce the complexity for consumers and alleviate a considerable administrative burden for insurers. The government recognises the importance of private health insurance as a pillar of our health system and respects the sacrifice made by many Australians to provide for their own health care.

Question agreed to.

Bill read a second time.