Mr GEORGANAS (9:40 AM) —I rise on an issue which is a very real concern to the people of the electorate of Hindmarsh, which I represent. Last week this government gave yet another stamp of approval to an increase in health insurance premiums—the fourth consecutive premium increase for private health funds. At almost eight per cent it is the highest increase since the introduction of the private health rebate, which was meant to make private health insurance more affordable. It is now about 33 per cent more expensive, and people have been calling my office to let me know that they cannot afford it. But because of this government’s attitude towards Medicare—it has reigned over a dramatic fall in bulk-billing rates—and its failure to adequately respond to the growing needs of the public health system, most people feel that private health insurance is a necessity. As such, allowing health insurance companies to continually jack up the price adds insult to injury, and I will be having a lot more to say about this matter. Indeed, one constituent has already advised me that she wishes to circulate a petition against the price increase for me to table in the House. She and her family are doing their sums at the moment to see whether or not they can afford to keep their insurance.

These price hikes are putting Australia on a path towards an Americanised health system where only the rich can afford to be healthy. Such a system is, quite simply, un-Australian. The government’s promise to make private health insurance ‘more affordable and attractive’ has been proved to be yet another broken promise. I am amazed that this government can say in one breath that it will make health insurance more affordable and, in the next, say that there is nothing it can do to stop premiums increasing this year and perhaps into the future. In fact, I think it expects increases. People in my electorate of Hindmarsh now have to decide what they will go without so they can make ends meet after the health insurance premium rise. This government shrugs its shoulders as if it cannot possibly go in to bat for Australians who fork out their money for health insurance because our public health system has been regarded with disinterest.

Private health insurance is now 33 per cent more expensive than it was in 2001, which wipes out the government’s 30 per cent private health insurance rebate. The government has just put a rubber stamp on the rises on every occasion. This government needs to get in there and battle for the consumers. That is currently not happening, and the incentives we had four years ago have been gobbled up by health insurance companies. Furthermore, the promise that more Australians would go into private cover has proved to be incorrect. That means there is no easing of the pressure on the public system, and younger people who do not use their health insurance very often are going to drop out.

As a community we have a responsibility to look after people, whether they have private funds or not. We have an absolute responsibility to ensure that everyone has good health services. In order to relieve pressure on the public health system we need to negotiate with health care providers on behalf of consumers. If the government will not speak up for Australians, who will? I can guarantee the health insurance companies, who are on a nice little earner, will not suddenly find their consciences. (Time expired).