Bill Shorten reverses on private health plan

THE federal Opposition has been forced to rule out scrapping private health rebates as Bill Shorten pledged a crack down on junk policies if he wins government.

THE federal Opposition has been forced to rule out scrapping private health rebates after Bill Shorten yesterday pledged to crack down on junk policies if he becomes prime minister.

Mr Shorten used a National Press Club address to reveal Labor was working on health insurance reforms and twice did not rule out ending government subsidies should he win the next election.

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But Health Minister Greg Hunt quickly seized on Mr Shorten’s comments, warning that scrapping the rebate would make premiums unaffordable for people on middle and low incomes.

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Labor’s health spokeswoman, Catherine King, was forced to mop up the potential disaster, issuing a statement that there were “no further plans to change the private health insurance rebate”.

Mr Shorten said he intended to put the “big-end multinationals on notice” that they could not be making record profits and still put prices and exclusions up.

“For years premiums have been rising at triple the rate of inflation, way above the pace of wages,” Mr Shorten said.

“Australians are paying a lot more for their health insurance policies and getting a lot less. Ten years ago only 8.6 per cent of health insurance policies contained exclusions, now it’s 40 per cent.’’

Opposition Leader Bill Shorten addressing the National Press Club in Canberra. Picture: Kym Smith

Mr Hunt attacked Mr Shorten’s speech, saying the rebate provided $6.4 billion to 13 million Australians — including families, pensioners and low-income earners.

Mr Hunt said ending subsidies would raise the cost of private health insurance by 16 per cent — around $153 a year for a single person on basic care and up to $450 for a family.

“It’s means tested, it’s for those who otherwise would not be able to afford private health insurance,” he said.

“There are Australians who have private health insurance, who value their private health insurance in terms of the coverage, in terms of the services and in terms of the peace of mind that it provides them.”

Mr Shorten’s speech, which revealed he would establish a federal anti-corruption body in government, also set the stage for a fierce campaign on low wage growth, enterprise bargaining and company tax cuts.

The former AWU secretary said the Turnbull Government had responded to low wage growth by attacking unions and backing cuts to weekend penalty rates.

“These are companies and CEOs whose profits and pay packets come from the hard work of Australians,” he said.

He said the wage system was no longer delivering and enterprise bargaining was “on life support”.