Health insurers will still be able to offer payments for natural therapies under a federal government shake-up but only as an incentive to sign up.
In his announcement a fortnight ago, Health Minister Greg Hunt said the government had agreed to stop insurers from offering benefits for a range of natural therapies, such as bowen therapy or rolfing.
Australia's chief medical officer Professor Brendan Murphy told a Senate estimates hearing in Canberra that policyholders would not be able to claim for such therapies.
But he revealed insurers would still be able to offer claims under incentives programs, just not under the normal "extras" deductions schemes.
"Insurers do have an option as an incentive payment in the first year of a policy to offer a range of additional products that aren't listed under the act," Professor Murphy said on Thursday.
The department's Charles Maskell-Knight also confirmed insurers can still offer payments for people to encourage them to sign up.
Professor Murphy said his predecessor has looked at the issue of natural therapies and there was no consistent proof in the published literature of health benefits.
Massage therapy will still be included after limited evidence of symptomatic relief for some illnesses was found.
Health department modelling suggests there could be a 50,000 increase in young people signing up to insurance policies given planned new discounts.
Australians aged under 30 will be offered a two per cent discount on their premiums every year up to a maximum of 10 per cent, which they will keep until they are 40.
"Industry is much more confident that with a well targeted advertising campaign they can do much better," Mr Maskell-Knight said.
A Senate inquiry in Sydney on Tuesday will further examine the changes, which include classing policy categories as gold, silver, bronze and basic.
