Senate Community Affairs Legislation Committee [Part 2], , 2:14:46 to 2:21:43
Discussion on the legislative timing for private health insurance rebate changes and the impact on the April 1st premium round.
Topics: Health, Government spending
Speakers: Senator Anne Ruston, Celia Street, Unknown Speaker, Blair Comley, Senator Nita Green, Duncan McIntyre, Gavin Matthews
>> vaccine
>> vaccines
>> vaccine >> cervical cancer? >> Yeah. Oh, it's the next one. Is it? Okay, fine. Cancel that. Um okay, last nearly last question. Um my understanding is that um there was guidance sent to the the private health insurers um about how to treat the rebate changes that were being proposed by the bill that has been subsequently discharged. Um is that correct? >> Yep. >> So I'll get you to say yes to nodding from a distance doesn't doesn't work
Celia Street deputy secretary assistant strategy group.
>> Uh okay. So [clears throat] um is it possible to table that advice? And also um since the um discharge of the bill um has the department provided um well since the 14th of October has the department provided any new advice um to private health insurers about how they should treat this particular bill?
>> Yes. Yes. We're happy to table the statement of expectations. I think it is a public >> public document
>> public. So has there been a subsequent one? So there was an initial table of expectations that was sent that related to how they handled the bill. >> Has there been any subsequent table expectation documents sent to them to say now the bill's been discharged how they should treat it?
>> No. So no there hasn't been because the bill is before um before parliament. The statement of expectation actually outlines what to do in the like acknowledging the parliament parliament uncertainty is probably not the right word but in terms of um not making an assumption either way in terms of passage the premium round has an explicit process for managing that it has in the statement of expectations that should there be amendments to the bill or any of those things there'll be another opportunity to provide information into that premium round into that application process. Yes.
>> When is it to to I understand there's a very very significant process that precedes the announcement of the premium round changes. When does do you as the department and does the sector need and all the backwards and forwards that goes on between the two of you to make when you get to deciding what happens on the 1st of April? What is the latest date that you would need to have certainty around changes of the nature that are in this bill in order for this to be implemented on the 1st of April 2027?
>> So we would normally um try and make sure we've got a decision by the end of January so that for the implementation from first of all um for 1st of April
sorry what do you want at the end of
January? By the end of January is normally when government would seek to um announce the
>> Yeah. So how far before that would the sector need to know what the impact or what the changes are likely to be because obviously they have to provide you with information. You have to provide them back with response to that information and there sort of I understand there's a bit of a two and fro process to try and get to the lowest possible premium. When is that drop dead
>> Well, what I'd just say with the statement of expectations and then I'll pass to to Mr. Hawkins is that um in that we acknowledge that there might there might not be that certainty prior to the applications which is by the 11th of November. So what I'm saying is we don't need to have made any updates to the insurers by that date. Um it would be beyond that date but I will um I will pass to Mr. Hawkins, but it was it was clearly articulated to insurers that should there be any amendments or changes that we would have a subsequent process and we would do that iteration. But I'll pass to you. But I will pass to
M. >> Before you go to Mr. Hawkins, I I think my question wasn't so much around, you know, your promise to provide that consultative process. It was when is the last possible time that the changes can come into effect to enable you to be able to go through the process that obviously you know you want to go through and you promise and need to go through with the sector in order for you to meet the one April deadline. >> that's that's all I want to know is just the date. >> Okay, fine. That's enough. But
significant to and fro. We did a bit of a change to the process last year and found that actually a number of insurers
two or three insurers that we had to
>> You've only got one sitting left. So, one would assume that that's probably a drop dead week in terms of
>> and the only thing I'd say here, Senator, is that um I think the characterization of two and fro is a little bit different to if you have kind of a binary choice whether you're going to have a treatment or not because that's a relatively easy thing to adjust in terms of what the premium offer is kind of on or off.
>> So on that basis then, so we've got one sitting week left at the end of >> Sorry,
>> there's two Senate sitting weeks.
>> Yeah, but I mean obviously it's the House of Representatives because if any changes occur, then it has to go back. So there's only one um House of Representatives sitting week after this week, isn't it? >> Yeah. Yep. Yep. So that's what I'm talking about. Um and so I haven't seen the sitting calendar for next year. Maybe Senator, you know what it is.
>> I was getting confused cuz I thought maybe there's only one week and we don't have to come back so soon. And well,
you'd know better than I if that was the case.
>> There's definitely two Senate Senate sitting weeks and one House one.
>> Yeah. Okay. So, we have one dual House sitting week left um at the end of November. Um if that is not able to be met in terms of the changes, would it be fair to say that the changes could not occur for the 1st of April given that we're not going to sit until February unless Senator Green's going to tell me
this is really we don't know what sitting calendar is like, but that would not that would not rule it out to if you had sittings in February >> um if if it was a clear binary.
>> Okay. All right. Thank you. So, so your answer is it wouldn't rule it out. You could go as late as making the decision in February in order to still meet the January uh the April deadline.
And I know we have a difference of opinion on this policy, but I but I just for your um uh to make it clear, the government's committed to the policy and we'd like to see it passed before the