Labor tries again on health insurance bill

3 Feb 2012, 4:47 pm   -   Source: AAP
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The Gillard government is hoping Adam Bandt, Andrew Wilkie and Rob Oakeshott will back its controversial changes to private health insurance.

The Gillard government will push ahead with its plan to means test the private health insurance (PHI) rebate next week even though it's yet to lock in the support of the three crossbench MPs it needs to pass the legislation.

Labor is banking on the help of Greens MP Adam Bandt and independents Andrew Wilkie and Rob Oakeshott.

It appears all three may be willing to back the bills but it's not a sure thing, with the Greens indicating they could withdraw support if Labor makes too many concessions to the others.

The federal government admitted at the end of 2011 it didn't then have the numbers to pass the changes, which could save $100 billion by 2050.

Mr Oakeshott previously voted against the plan to means-test the 30 per cent private health insurance rebate and increase the Medicare levy surcharge for those without cover.

But on Friday he was sounding positive.

He told AAP he did not buy the "armageddon argument" that private health insurers would lose vast numbers of members if the rebate was means-tested.

"I would fall on the side of the argument the government is presenting, rather than the private health industry, that there will be small drift," he said.

The member for Lyne will meet with new Health Minister Tanya Plibersek early next week to seek "solid assurances" regarding his concerns over the impact on regional doctors and specialists.

Debate is scheduled to resume in parliament on Thursday.

Labor is no longer guaranteed Mr Wilkie's vote after Prime Minister Julia Gillard reneged on her deal to introduce a mandatory pre-commitment scheme for poker machines by 2014.

But it is likely he'll still support the government in the end.

"Quite a bit of new evidence has emerged which I need to consider carefully before being able to confirm my support for the legislation," Mr Wilkie told AAP in a statement.

But he added: "If the settings aren't right I won't support it."

The Greens' position is nuanced. They support means-testing the rebate but not increasing the surcharge, which they claim will unfairly penalise those without private cover.

They also want to see Medicare-funded dental care and know the insurance changes could go a long way to funding that.

Their party room will decided a final position on Tuesday.

Mr Bandt told AAP if the government watered down the bills - as it did with the mining tax to get Mr Wilkie on side - "it may jeopardise the Greens support for this legislation".

But he appeared to accept Labor wouldn't buckle on the surcharge.

Greens health spokesman Richard Di Natale was sounding less conciliatory.

"We continue to have some serious concerns about the Medicare surcharge levy," Senator Di Natale told AAP.

"We think that's bad public policy."

The remaining crossbench MPs indicated on Friday they were almost certain to vote against the changes when they came to a vote.

West Australian National Tony Crook and independent Bob Katter are both worried about an exodus from private funds placing a greater burden on the public hospital system.

New England MP Tony Windsor has voted against the measures in the past and remains troubled about the impact on regional services.

"I haven't seen any reason to change my mind," he told AAP on Friday.

Labor wants to means test the rebate for individuals earning more than $80,000 and families earning more than $160,000.

The government's reforms have been defeated twice previously in the Senate.

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