Department of the Legislative Assembly, Northern Territory Government

Mr RIOLI - 1998-11-25

Madam Speaker, Territorians currently pay $1196 per year for private hospital cover with Medibank Private, the lowest in Australia. South Australian families pay $2170, Queensland families pay $2206, Tasmanian families pay $2425, and Victorian families pay $2545. Northern Territory premiums are lower because Territorians don’t make many claims.

Minister, isn’t it true that under your privatisation plan, insurance premiums will rise dramatically? Will the minister guarantee health insurance premiums will remain the lowest in Australia once you privatise the 5 Territory hospitals?

ANSWER

Madam Speaker, the opposition keeps using words like ‘will rise’ and ‘will privatise’. I emphasise that we are going through an exercise, a responsible exercise, to ask the question and test the market based on the information we have.

With regards to Territorians paying $1196 per year for private health insurance - yes, that is correct. I will say to Territorians that I am surprised, frankly, that we have so many loyal Territorians to the private health insurance industry because they are getting almost nothing for that $1100 a year. It is absolutely amazing to me why they continue to take up private health insurance.

I will tell you one of the reasons. One of the reasons is that they are concerned for their children’s health and their access to good services and good facilities. One of the reasons is the old saying in the Northern Territory: ‘When in pain, catch a plane’. Those sorts of things are historically outdated. What we have to get in the Northern Territory is a good, robust public and private health insurance system, a wider range of facilities, and we have to give Territorians some return on the $1196 that they spend per year already.

Will health insurance premiums rise? Not even the federal Health Minister can guarantee they will not. But I would be hopeful at this stage - very hopeful - that not only will we get a wider range of facilities, not only will we get more specialists into the Northern Territory, not only will we get hospitals built that are suitable for the 21st century, but Territorians will get their money’s worth for the $1196 they spend.

If the opposition can crystal ball, I will do a bit of crystal balling, because it is part of the dream I have for health services in the Northern Territory. I think with our population, the fact that we have 5 hospitals, that we have a finite number of Territorians, and that we have our own insurance office, we could, with the cooperation of the health insurance funds, get a health insurance scheme in the Northern Territory focused for Territorians, not unlike the Territory insurance scheme which is the best scheme in Australia for general insurance, household and flood insurance. I believe that there is a great opportunity for Territorians to get a health insurance fund structured for Territorians and structured in such a way that they get their money’s worth and get excellent services in the future.
Last updated: 09 Aug 2016