Health Legislation Amendment (Improving Choice and Transparency for Private Health Consumers) Bill 2026; Second Reading

Smith criticised the previous government's Medical Costs Finder initiative, noting that only 88 doctors had voluntarily displayed fees by 2025 despite a $24 million investment. Smith argued that the bill fixes this by allowing the publication of existing government data on specialist charges and hospital arrangements. Smith also highlighted the bill's role in protecting the 15.3 million private health insurance holders from product phoenixing by requiring ministerial approval for new products and reduced benefits.

Jarrett emphasised that nearly 9 per cent of people delayed specialist care in 2024 due to cost concerns, leading to poorer health outcomes. Jarrett explained that the bill draws on Medicare and hospital billing data to publish fee information without requiring specialist input, addressing the low uptake of the voluntary system. Jarrett also detailed how the legislation formalises the premium approval process and introduces a public interest test to prevent insurers from exploiting loopholes through product phoenixing.

Zappia cited data showing that median out-of-pocket medical fees surged significantly between 2018-19 and 2023-24, with some fees increasing up to nine times. Zappia argued that transparency would allow patients to shop around for more affordable specialists, potentially reducing pressure on public hospital waiting lists. Zappia welcomed the ban on product phoenixing, noting that $31.1 billion was paid in private health insurance premiums in 2024-25, and stressed the need to protect consumers from unnecessary cost increases.

Belyea framed the bill as part of a broader $8.5 billion investment in Medicare to strengthen primary care and bulk-billing incentives. Belyea argued that the legislation provides a clear legislative framework for Commonwealth primary care incentive programs, ensuring accountability and integrity in their administration. Belyea noted that bulk-billing rates had risen to 81.9 per cent nationally following recent government incentives, demonstrating the effectiveness of targeted support for healthcare providers.