‘Wait and see’ for private health changes, says Dutton

HEALTH Minister Peter Dutton has hosed down speculation of private health insurance reforms.

The Minister for Health Peter Dutton gave several speeches where he suggested insurers would have a greater role in the future health system. Picture: Gary Ramage

HEALTH Minister Peter Dutton has hosed down speculation of private health insurance reforms, saying he would only “wait and see what happens” with a Medibank Private primary care trial.

Before the budget, Mr Dutton gave several speeches where he suggested insurers would have a greater role in the future health system and drive innovation, with members getting more out of their premiums.

He told The Weekend Australian he was referring to a Medibank Private trial, where the health fund is effectively paying a number of Queensland GP clinics to bulk-bill members.

Yet the budget announcement of $7 co-payments for standard consultations may scuttle that trial — a Medibank Private spokeswoman yesterday said the fund would monitor the status of required legislation — and Mr Dutton will not allow funds to cover patients’ out-of-pocket primary care expenses.

Medibank Private — the largest health fund, which will be sold by the government — had sent Mr Dutton a reform blueprint for the government to address what it called a “downward spiral of premium increases and declining participation”.

Among its recommendations were changes to community rating, also advocated by the National Commission of Audit, which called for a more dramatic overhaul of the health system to ­compel higher income earners to use their insurance instead of Medicare.

The budget instead detailed plans to pause the income thresholds for the Medicare levy surcharge, paid by high-income earners who do not have ­insurance, and the insurance ­rebate. The Private Health ­Insurance Administration Council will also be abolished.