Ryan Park speaking about new legislation which would force private health insurers to pay more for single hospital rooms.
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00:00My question is to the Minister for Health and Regional Health.
00:03Can the Minister please advise the House about the means Labor Government's work to ensure
00:08that the taxpayers of New South Wales are getting their fair share from private health
00:11insurance?
00:12Minister.
00:13A very good question and a very good advocate for the people of South West Sydney, particularly
00:21in and around services like Caritani, that I know he's had a very strong relationship
00:25on and we were recently able to expand.
00:29This is an important piece of legislation that we have embarked on and started the process
00:36this week.
00:37We don't have to use it, we don't have to use it, but I want to be clear to the people
00:40of New South Wales this.
00:43The Treasurer and I are not going to sit idle by and see $140 million ripped out of our
00:49system that taxpayers are forced to find when private health insurance companies are currently
00:56receiving some of the largest profits in this country.
01:00It is time, Mr. Speaker, with the demands on health care, with the demands on health
01:05care staff, with the demands on services across New South Wales, it's time they pay their
01:11fair way.
01:12And I want to outline this very, very clearly.
01:14In New South Wales, Mr. Speaker, it costs around about $1,075 a day to operate one of
01:21our beds.
01:23That's roughly the amount, not exact, but that's roughly the amount.
01:27$892 is what we charge private health insurers for that single room rate.
01:34Now that's important and I'm very pleased that around about 44 of the 53 private health
01:39insurance companies, Mr. Speaker, have come on board and said, that's fair, we'll pay
01:44our own way, we'll pay our own way.
01:47There are a small group, there are a small group that is not happy with the 17% subsidy
01:53that we provide, the difference between the $1,075 and the $892.
01:59They want to provide, they want to pay just over $400 for that.
02:05That would equate to, Mr. Speaker, about a 56% subsidy from taxpayers.
02:10Now I know comments today from some private health insurers that this will increase premiums.
02:17Well, be careful of this, be careful of this, because under that theory, and let's pretend
02:23that theory works, then premiums should have been reduced over the last few years because
02:30they haven't paid their way, because they haven't paid their way.
02:34Now that's fairly easy to understand.
02:39If the theory was, this will increase premiums that way, then that theory would reverse opposite,
02:46that premiums should have been going down when they didn't pay it.
02:49Mr. Speaker, that hasn't happened.
02:53Now I'm interested in what the opposition do, because we've done some checks on Hansard,
03:00and this was a bill that I think Treasurer Baird introduced, 2012-13, had a support of
03:07it.
03:08So they supported it.
03:09Mr. Speaker, we know a lot of people over there supported it back there because we were
03:24in the opposition for a long time, and those of us who were here since 2011, 2013, it was
03:28their side and government, just for the people in the gallery.
03:30They supported it.
03:31So I'm assuming they'll support it this time.
03:34I'm assuming they'll support it.
03:38As the Premier said, trying to find where they sit on things is a bit difficult.
03:45But I would have thought, Mr. Speaker, I would have thought on these few facts, you'd back
03:53it in.
03:54We always know at the moment, every single person in this chamber knows at the moment
04:02that healthcare is under extreme pressure and demand.
04:05In fact, we know that healthcare workers doing these services and carrying out these
04:11services are under extreme demand at the moment.
04:15We also know that the cost of health services are increasing.
04:19So I would have thought at a time when the government is already providing a 17% subsidy,
04:25and that 44 out of 53 health insurers have said, we'll get on board, that I think you
04:32would read the tea leaves and say it might be a good idea to back public healthcare,
04:38back the delivery of health services, back the community who expect those delivery of
04:43health services.
04:44So, Mr. Speaker, Mr. Speaker, we will continue to have discussions and negotiations with
04:51private health insurers.
04:53The Treasurer and I have made that very, very clear.
04:56We don't need to enact this legislation, but I'll make it very clear to them.
05:00The time is coming to get on board and the time is coming to pay your way.
05:06The people of New South Wales have subsidised you for too long.
05:11And just the same way that Treasurer Baird demand fairness in the system, so too do the
05:19Treasurer and I.