ALP Policy on Private Health Insurance


The Federal Opposition announced in 2018 that, if elected at the upcoming federal election, they will limit annual private health insurance premium increases to a cap of two percent per year for two years. They will also direct the Productivity Commission (PC) to inquire into the value, quality and affordability of the private healthcare system.

Shadow Health Minister Catherine King released a discussion paper in December 2018, focusing on nine key questions:

  • How can community rating be supported?
  • Is the system of risk equalisation providing the right incentives to insurers?
  • Should insurers cover all providers equally?
  • Could competition in the private health insurance sector be improved?
  • How should the private health insurance sector be regulated?
  • What should private health insurance cover?
  • How can the information available to consumers be improved?
  • Could the pricing process for prostheses and related devices be improved?
  • What role should private health insurance play in public hospitals?

Draft terms of reference for the PC inquiry will be released before the federal election.