Consultation paper: Private health insurance reforms – second wave - December 2020

Closed 8 Feb 2021

Opened 17 Dec 2020

Contact

phiconsultation@health.gov.au

Results updated 8 Jun 2021

On 6 October 2020, the Government announced a package of PHI reforms that aims to make PHI more affordable for consumers by encouraging greater participation, particularly by younger Australians, and by providing greater flexibility for insurers to manage costs and fund services valued by their policy holders.

 

On 17 December 2020, as the Government announced, the Department of Health released a consultation paper to assist the finalisation and implementation of the following reforms:

1. Increasing the age of dependents to encourage younger people and also people with a

disability to maintain private health insurance;

2. Expanding home and community based rehabilitation care;

3. Expanding funding to at home and community based mental health care; and

4. Applying greater rigour to the certification for hospital admission.

66 submissions were received. Some stipulated they were not for publication and these have not been included here. Some had sections not for publication, these have been redacted and marked as redacted.

Following this consultation, some measures are still being considered, while:

  • applying greater rigour to the certification for hospital admission became a Budget measure in the 2021-22 Budget, and
  • increasing the age of dependents to encourage younger people and also people with a disability to maintain private health insurance has been introduced as a Bill to the Commonwealth Parliament.

Files:

Overview

View the PHI Consultation Document (closed 8 February 2021).

On 6 October 2020, the Australian Government announced the second wave of reforms to private health insurance with the aim of improving the affordability, value, and attractiveness of private health insurance, particularly for younger Australians [Budget Paper No.2 - Budget Measure: Supporting Our Hospitals — simpler and more affordable private health cover for all Australians].

The announcement outlined the Government’s decision to proceed with the reforms outlined in this consultation paper, however, more information is needed to finalise the policies, and to understand their impact on factors such as private health insurance (PHI) coverage and premiums.

Why your views matter

The Department of Health invites feedback on the implementation of reform one below, and the development of reforms two to four:

  • Consultation One: Private Health Insurance – Increasing the age of dependents to encourage younger people and also people with a disability to maintain private health insurance.
  • Consultation Two: Private Health Insurance – Expanding home and community based rehabilitation care.
  • Consultation Three: Private Health Insurance – Expanding funding to at home and community based mental health care.
  • Consultation Four: Private Health Insurance – Applying greater rigour to certification for hospital admission.

The consultation paper contains a number of questions for consideration at the end of each section. These questions are intended as a guide. Respondents should not feel limited to only responding to these questions. The Department welcomes all feedback, including additional measures to address issues detailed in this paper.

Feedback on this paper is requested by 17:00 ACT local time, Monday, 8 February 2021 by email to: phiconsultation@health.gov.au.

 

Audiences

  • Carers and guardians
  • Families
  • Parents
  • Young people
  • Academics
  • Non-government organisations
  • State government agencies
  • Health professionals
  • Health workforce
  • General public
  • Community groups

Interests

  • Health insurance