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

Mr BUTLER (Hindmarsh—Minister for Disability and the National Disability Insurance Scheme, Minister for Health and Ageing and Deputy Leader of the House) (12:16): I present a supplementary explanatory memorandum to the bill. I seek leave of the House to move government amendments (1) to (9) as circulated together. Leave granted.

Mr BUTLER: I move: (1) Clause 2, page 2 (table item 3, column 2), omit "1 April 2026", substitute "18 September 2026". (2) Schedule 2, item 8, page 19 (lines 4 to 7), omit paragraphs 66-6(1)(a) and (b), substitute: (a) if the Minister has not determined a period for a year under subsection (2)—the period of 55 days beginning on the third Friday in September of that year; or (b) if the Minister has determined one or more periods for a year under subsection (2)—that period or those periods.

(3) Schedule 2, item 8, page 19 (lines 11 to 13), omit the note. (4) Schedule 2, item 8, page 19 (after line 13), after subsection 66-6(2), insert: (2A) Without limiting subsection 33(3A) of the Acts Interpretation Act 1901, a determination under subsection (2) of this section may be expressed to apply in relation to a specified class of application. Such a determination does not affect the operation of paragraph (1)(a) of this section in relation to other classes of application.

(5) Schedule 2, item 8, page 19 (line 17), before "A designated change", insert "(1)". (6) Schedule 2, item 8, page 19 (line 19), before "a change", insert "subject to subsection (2),". (7) Schedule 2, item 8, page 19 (after line 34), at the end of section 66-7, add: (2) The Private Health Insurance (Product Premium) Rules may provide that paragraph (1)(a) does not apply in relation to a change of a kind specified in those Rules for the purposes of this subsection.

(8) Schedule 2, items 15 and 16, page 28 (line 8) to page 29 (line 11), omit the items, substitute: 15 Application of amendments Application provisions (1) The amendments of sections 66-1 and 66-5 of the Private Health Insurance Act 2007 made by this Schedule apply on and after the commencement day in relation to: (a) a policy that belongs to a product subgroup that is first made available on or after the commencement day; and (b) a complying health insurance policy that belongs to a product subgroup of a complying health insurance product for which an approval under section 66-10 of the old Act was in effect immediately before the commencement day; and (c) a policy: (i) that belongs to a product subgroup that was first made available before the commencement day; and (ii) for which there was no approval in effect under section 66-10 of the old Act immediately before the commencement day; at and after the earlier of: (iii) the first time, on or after the commencement day, that the premiums charged under the product subgroup change; or (iv) the first time, on or after 2 April 2027, that a designated change is made to the product.

(2) Section 66-8 of the Private Health Insurance Act 2007, as inserted by this Schedule, applies in relation to a product subgroup that is first made available on or after the commencement day. (3) Section 66-10 of the Private Health Insurance Act 2007, as substituted by this Schedule, applies in relation to: (a) a proposed change to the premiums to be charged under one or more product subgroups of a complying health insurance product if an insurer proposes to make the change on or after the commencement day (whether or not the insurer proposes to make a designated change at the same time); and (b) a designated change that an insurer proposes to make to a complying health insurance product on or after 2 April 2027.

(4) Sections 66-11 and 66-12 of the Private Health Insurance Act 2007, as inserted by this Schedule, apply in relation to an application that is made on or after the commencement day. Pending applications for approval (5) If: (a) before the commencement day, a private health insurer applied, under section 66-10 of the old Act, for an approval of a change in premiums; and (b) immediately before the commencement day, the Minister had not decided to either approve or refuse to approve the proposed changed amount or amounts; then: (c) the application lapses at the start of the commencement day; and (d) that section ceases to apply in relation to the application.

Operation of first approved application period (6) If the commencement day is a day in the period, for the 2026 calendar year, mentioned in paragraph 66-6(1)(a) of the Private Health Insurance Act 2007, as inserted by this Schedule, the approved application period for 2026 is taken to: (a) begin on the commencement day; and (b) end at the end of the period of 55 days beginning on 18 September 2026.

(7) The approved application period mentioned in subitem (6) does not apply to an application that relates to a designated change that is proposed to be made on or after 2 April 2027 (whether or not the application also relates to a change in premiums). (9) Schedule 2, item 17, page 29 (line 13), omit "Section", substitute "Subject to item 15, section". The government amendments to the Health Legislation Amendment (Improving Choice and Transparency for Private Health Consumers) Bill 2026 make minor changes to the commencement date and the application of new private health insurance premium requirements to address stakeholder concerns and some implementation risks.

The amendments align commencement with the start of the next premium round and give a transition period for private health insurance product changes that require premium approval. This addresses stakeholder concerns around the uncertainty of the eventual date of royal assent and how this would interact with the coming premium round. New products and price changes still require approval under the new provisions from commencement, ensuring they are included in this year's premium round intended to start mid-September 2026 with a 1 April 2027 effective date.

Amendments (5) to (7) also respond to stakeholder feedback. Insurers have argued that changes to treatment cover that arise from decisions of government or other organisations should not be treated as designated changes that require premium approval. This is because not all changes that impact treatment cover are decisions of insurers.

Some are decisions of government—for example, changes to the Medicare Benefits Schedule—or of other organisations, for example the schedule of treatments that are published by the Australian Dental Association. Without this amendment, insurers would have to apply for approval, and the department of health would have to assess and approve applications that would cause unnecessary administrative burden and would not meaningfully address the objects of the bill.

These amendments therefore provide that rules may be made to exempt specified changes that reduce or remove treatment cover from being a designated change. Not all insurer requested exemptions will be appropriate. Appropriate exemptions applied through delegated legislation will allow responsive management.

I thank the sector for their constructive engagement through this process and commend the amendments to the House. Question agreed to. Bill, as amended, agreed to.