The NSW Government has passed legislation addressing the refusal of private insurers to pay their bills in public hospitals.
The refusal of the country’s biggest private health funds to pay the correct single room rate has been robbing public hospitals of $140 million each year.
The bill passed the Legislative Council 21 to 17 with the support of the Greens, the Shooters, Fishers and Farmers, the Animal Justice Party and the Legalise Cannabis Party.
In the Legislative Assembly it passed 50 to 31 with the backing of six of the eight independents who voted, and the Greens.
The result means the Leader of the Opposition led a vote against the very same legislation he backed a decade ago.
In 2013, Liberal Leader Mark Speakman supported then-Treasurer Mike Baird’s bill to amend the Health Insurance Levy.
This achieved an agreement from the private insurers to pay their fair share.
However in 2019 the major funds began walking away from that agreement, and since then have doubled their profits.
Mr Baird’s 2013 legislation was supported by NSW Labor in a united effort to ensure the big private health insurers paid their bills.
But the Liberal Party’s opposition signals that under Mr Speakman’s leadership, private insurers can walk away from their bills with no recourse.
The Opposition Leader, the Shadow Treasurer and the Member for Vaucluse must explain why they believe wealthy private insurers don’t have to play by the same rules as hard-working families across NSW and pay their bills.
The NSW Government remains open to dialogue with major insurers to resolve the issue.
The Government applauds the majority of non-profit private health funds, including Teachers Health, Nurses and Midwives Health and Emergency Service Health, who continue to pay the correct rate.
Treasurer Daniel Mookhey said:
“Mike Baird was right in 2013 when he demanded insurers pay their fair share and a decade later, we are right to reinforce that agreement.
“Premiums didn’t go down when the big insurers stopped paying their bills. They shouldn’t threaten families with an increase now. The big insurers can still resolve this impasse by simply paying their bills.
“The Government thanks those on the cross benches in both houses who supported this bill.”
Minister for Health Ryan Park said:
“All we’re asking is that private health insurers pay their fair share of their use of public hospital beds.
“Every day they don’t, it’s costing the state over $338,000 – every single day.
“It is so emblematic of the current Liberal Opposition that they refuse to support the very same bill they proposed when they were confronted with this very same set of circumstances.
“It is so symptomatic of this Liberal Opposition which no longer knows what it stands for, completely devoid of conviction.”