IN SWEEPING moves to rein in health insurance premium rises, the Gillard government has ordered two-thirds of funds to revise planned rises for this year.
The Health Minister, Tanya Plibersek, last night confirmed to the Herald she had written to several insurers ''whose proposed increases are what I considered to be contrary to the public interest and have made it clear to them that their premium increases should be lower''.
The action comes as the government's hopes of clinching its $2.4 billion health insurance means test plan appear to be rising with a key independent MP, Rob Oakeshott, signalling conditional support.
Health funds have had buoyant business, and industry sources say they expect premium increases of about 5 per cent this year. Funds say the cost of meeting hospital charges is rising at a similar rate to their revenues, which were up 8.8 per cent.
But Ms Plibersek said last night: ''Let me be very clear, my priority is to ensure that the increase is kept to a minimum while ensuring that we have a strong industry, and the latest reports show that we have a strong industry.''
The government is stepping up its bid to introduce a means test that would deny high income earners the 30 per cent rebate on health insurance, typically worth $1000 a year on a family policy.
The Prime Minister, Julia Gillard, and Ms Plibersek this week are expected to meet Mr Oakeshott, one of four potential supporters of the legislation, which needs just two non-Labor MPs to pass the House of Representatives.
Mr Oakeshott indicated yesterday he was sympathetic to the view that a means test would not necessarily trigger a drop in health fund memberships in regional areas, leading to further problems in getting medical specialists in country hospitals.
But he said he would seek government assurances of counter measures if the changes affected specialist services.
Another NSW independent, Tony Windsor, who has opposed the measure, told the Herald: ''I have not ruled out anything. My instinct is not to support the government's view, but I am open to argument.''
The remaining two potential supporters are the Greens' Adam Bandt and the Tasmanian independent, Andrew Wilkie. The Greens support removing the 30 per cent health insurance rebate for high income earners, but they oppose a measure that restricts an increased Medicare levy surcharge to high earners without health insurance.
The Greens health spokesman, Richard Di Natale, yesterday said it was wrong for high income earners to be exempt from the higher levy just because they had health insurance.
Mr Wilkie supported the legislation before losing the government's support for his poker machine policy. Yesterday he said he needed to review the evidence ''before being able to confirm my support for the legislation. If the settings aren't right, I won't support it."
The West Australian National Tony Crook yesterday came out against the measure, condemning Labor ''for continuing to push forward with this legislation while regional Western Australians are forced to go without a doctor''.
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