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Tuesday, 7 March 2023
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Senator McALLISTER (New South Wales—Assistant Minister for Climate Change and Energy) (12:52): I thank the senators for their contributions to the debate on the Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery) Bill 2022, the Private Health Insurance (Prostheses Application and Listing Fees) Amendment (Cost Recovery) Bill 2022 and the Private Health Insurance (National Joint Replacement Register Levy) Amendment (Consequential Amendments) Bill 2022. This package of bills supports the implementation of a 2021-22 budget measure, modernising and improving the private health insurance Prostheses List. As other senators have observed, it arises after an extended period of consideration and reform. These bills represent the first tranche of legislative change required to fully implement measures that will support modernising and improving the private health insurance Prostheses List.

The first bill is the Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery) Bill 2022. This bill inserts definitions of medical devices and human tissue products into the legislation, which will better define the kinds of products that, along with additional criteria contained in the legislative instrument, will be considered eligible for set benefits from private health insurers. The bill also provides for the renamed Private Health Insurance (Medical Devices and Human Tissue Products) Rules. This new name is reflective of the modernised and amended scope of the legislation. The bill also updates the cost recovery arrangements to support predictable and sustainable fee-for-service arrangements.

The second bill is the Private Health Insurance (Prostheses Application and Listing Fees) Amendment (Cost Recovery) Bill 2022. This bill provides for levies payable by medical technology sponsors for the listing of medical devices and human tissue products. These levies are essential as they allow the department to administer the listings in a financially sustainable and appropriate manner.

The third bill is the Private Health Insurance (National Joint Replacement Register Levy) Amendment (Consequential Amendments) Bill 2022, which is machinery in nature only and does not change any current requirements or obligations.

These bills will modernise and improve administrative processes and cost recovery arrangements. They are long-awaited improvements that will assist in keeping downward pressure on private health insurance premiums by reducing the costs associated with medical devices and human tissue products.

I note the report from the Senate Standing Committee for the Scrutiny of Bills, and the government has circulated an amendment for the committee stage which goes to that. We would expect to speak to that in the committee stage. I note, too, the second reading amendments that have been moved and foreshadowed during the course of the debate. The government is not supportive of these amendments.

I want to particularly speak to the second reading amendment on sheet 1826. We are aware that some stakeholders report practices between hospitals and sponsors that may constitute anticompetitive behaviour. These are usually investigated by the ACCC, supported by a body of evidence that can support the claims. The ACCC establishes an annual program of work, and any inquiry into the Prostheses List would be subject to the priorities of the ACCC. Given that such an inquiry would take some time to establish and report following a reference from the Treasurer, the government is committed to shorter-term reforms that will make a significant impact. A key component of the Prostheses List reform is the development of a new compliance framework. This will include standard regulatory regime provisions for effective monitoring, investigation, referral and enforcement. Essential to the compliance framework is the ability to gather information from stakeholders and to share information with relevant regulators on matters of noncompliance, and the ACCC and the TGA are key regulators for referring matters of noncompliance.

The government is working to introduce legislation in the spring sittings to establish the compliance framework for safeguarding the Prostheses List. In the meantime, a number of existing laws continue to apply to Prostheses List stakeholders. These include: the Therapeutic Goods Act 1989, which regulates the supply and advertising of therapeutic goods, including medical devices; the Australian Consumer Law, which deals with misleading or deceptive conduct in trade and commerce; and the Criminal Code, which deals with providing false or misleading information to Commonwealth entities. We consider these mechanisms appropriate while the broader reforms are being rolled out.

In relation to the amendment circulated and moved by Senator Steele-John: all Australians deserve access to affordable treatment and medical devices to stay healthy and to live full and productive lives. Private health insurance works with our public healthcare system to offer Australians more choice in health services and encourages those Australians who can afford to do so to contribute to the cost of their own health care, taking some of the pressure off public hospital systems and waiting lists. More than half the Australian population—about 14½ million people—have private health insurance. Australians, it seems, want to exercise choice about their health care. Private health insurers must ensure their members are getting value for money. When costs rise, they want to know higher premiums are contributing to system-wide improvements like higher wages for nurses and other health workers. As I indicated, all Australians deserve access to affordable treatment and the devices they need to stay healthy and to live full and productive lives.

In closing, I again thank senators for their contributions and for the courteous spirit in which the debate took place. I commend the bill to the Senate.

(Quorum formed)

The ACTING DEPUTY PRESIDENT ( Senator Polley ): The question is that the second reading amendment moved by Senator Steele-John be agreed to.