Discussion focuses on the projected increase in public hospital patient days and the resulting financial burden on state and territory health systems due to federal insurance changes.
HealthGovernment spendingSenator Anne RustonSenate Community Affairs Legislation Committee [Part 2]Supplementary Budget Estimates 2026–27Senate Community Affairs Legislation Committee [Part 2], 28 Oct 20264594
Transcript
Senator Anne Ruston
You have never provided me with anyinformation about um the downgrading ofcover. Um, so we also have a situationwhere the potential impact of thesepotential downgrades, the actual productthat they're downgrading to may notexist into the future because you'reyou're out at the moment consulting onchanges more broadly to private healthinsurance. So I suppose what I'm tryingto understand is we're sitting heretoday, the the bill got um dischargedfrom the notice paper. The governmentthen chose to immediately reintroducethat bill into the lower house andthat's where it is at the moment. Umwe're now close on six months since thisis announced. There's been great concernexpressed about uh the lack ofinformation about the impact on thepublic hospital system. Um we've hadstates and territories just about all ofthem come out and be concerned aboutthis. And we're sitting here on the 28thof October and I am seeking tounderstand what the broader implicationson the public hospital system are. Andin the 6 months since this has beenannounced, it appears if you have doneno more work to try and determine whatthat is. The only thing I have is adocument that says 154,000.What's it 241 people uh oh sorry 100153,241additional patient days are likely tooccur in 2829um based on the the evidence of theaverage cost of a a stay in hospitalthat's around $420million a year. But if you thenextrapolate that up at a 77.3%increase in the number of people inpublic hospitals, if you move to the78,000 in the second year of this, we'retalking about um nearly 3/4 of a billiondollars of additional costs that will beflowed to the public hospital system. Wedon't know whether that continues toincrease into 203031.But even if you just take the figures of78,000, that is just about chewed up.Every single cent of saving to thefederal government from this measure hasbeen transferred directly into thestates and territories hospital system.So I suppose maybe secretarywhy given the extra time that you've hadavailable to you haven't you bothered tochase down um the information that quiteclearly officials in your departmentthought was important to try and seekonly minutes after the announcement wasmade and here we are sitting at the endof October and your officials tell methey don't know the answer.