Health Insurance Reforms

CHERE has made a submission to the Senate Community Affairs Committee’s Inquiry into proposed Government reforms to the Private Health Insurance Bill 2006. 

The Bill concerns the concept of ‘broader health cover’ which would remove the legislative barrier to health insurers paying benefits for out-of–hospital medical services. This reform would enable currently in-hospital services, such as the management of chronic conditions, to be offered in a community setting.

The enactment of the Bill holds many potential benefits, but CHERE warned this reform may also have unintended consequences, in particular

• Diminished community rating and de-facto risk rating of private health insurance premiums,

• Extension of a two tier system (the insured and uninsured)

The full report can be viewed online at

http://www.aph.gov.au/senate/committee/clac_ctte/pte_hth_2006/report/report.pdf