Footnotes

Chapter 2 - The bill and the Medicare Levy Surcharge

[1]        Explanatory Memorandum

[2]        Part of the levy is hypothecated to fund Medicare, although it covers only a small proportion of the Commonwealth's outlays on the scheme.

[3]        Amanda Biggs, Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill 2008, Parliamentary Library, Bills Digest, 4 June 2008, no. 121, p. 3. The Hon. Peter Costello, Treasurer, Final Budget Outcome 2005–06, Table B1, p. 3. Australian Taxation Office, Taxation Statistics 2005–06, Table 1, p. 3. Australian Tax Office data for 2006–07 has not yet been publicly released.

[4]        The average salary figure is based on the latest ABS data for the March Quarter 2008 (6302.0).

[5]        Australian Bureau of Statistics, 6401.0, March 2008 Quarter.

[6]        Australian Taxation Office, Taxation Statistics 2005–06, Table 7: Personal tax, p. 3.

[7]        Australian Government, privatehealth.gov.au http://www.privatehealth.gov.au/information/surcharges/medicarelevy.htm (accessed 7 July 2008).

[8]        The Hon. Peter Costello, Appropriation Bill (No. 1) 1996–97, Second Reading Speech, 20 August 1996.

[9]        Professor John Deeble, Submission 3, p. 2.

[10]      These changes were effective as of 1 April 2005.

[11]      The Hon. Chris Bowen, Second Reading Speech, House of Representatives Hansard, 27 May 2008, p. 3349.

[12]      The Hon. Wayne Swan, Address to the National Press Club, Canberra, 14 May 2008.

[13]      Productivity Commission, 'Trade and Assistance Review 2006–07', Annual Report Series, Table 2.5b, p. 2.11.

[14]      See Professor John Deeble, Submission 3, p. 9.

 

Chapter 3 - Views on the bill

[1]        The Hon. Wayne Swan, 'Increasing the Medicare levy thresholds', Media Release, 13 May 2008.

[2]        Mr Marty Robinson, Proof Committee Hansard, 31 July 2008, p. 21.

[3]        See Mr McCullough, Proof Committee Hansard, 31 July 2008, p. 16.

[4]        The committee took evidence from HBF, HIF, BUPA Australia (MBF), NIB Health Funds Limited, Manchester Unity, Health Partners, iSelect and the Private Health Insurance Intermediaries Association.

[5]        The committee took evidence from the Health Insurance Restricted Membership Association of Australia and the Queensland Teachers' Union Health Fund.

[6]        The committee took evidence from St Andrew's Hospital in Adelaide, St John of God Health Care in Perth and Catholic Health Australia in Sydney.

[7]        The committee took evidence from the Australian Private Hospitals Association, Health Link Consultants, Australian Health Insurance Association, Australian Medical Association National, Western Australian and South Australian branches), Consulting 1805 and John Small Health Advisory.

[8]        The committee took evidence from Associate Professor Louise Savage, Professor Christian Gericke, Professor Leonie Segal, Mr Ian McAuley and Dr Tim Woodruff.

[9]        For example, Mr Ian McAuley, Submission 10, p. 6.

 

Chapter 4 - Modelling the impact of the bill

[1]        See John Deeble, Submission 3, p. 5; Access Economics, report released for iSelect, 'The impact of the changes to the income thresholds for the Medicare Levy Surcharge', 8 May 2008, p. 5; Ian McAuley, Submission 10, p. 1, M. Fitzgibbon, Proof Committee Hansard, 31 July 2008, p. 16; NIB Health Fund Ltd, Submission 7, p. 3.

[2]        Mr Ian McAuley, Proof Committee Hansard, 12 August 2008, p. 18. Mr John Brogden, Proof Committee Hansard, 31 July 2008, p. 24.

[3]        Treasury's modelling estimates that around 186 000 singles and 149 000 couples and families are expected to drop their private health insurance cover.

[4]        Budget Paper No. 2: Budget Papers 2008–09, Commonwealth of Australia, Canberra, p. 33.

[5]        Mr Nigel Ray, Treasury, Senate Estimates Hansard, 3 June 2008, p. 55.

[6]        Mr Marty Robinson, Treasury, Proof Committee Hansard, 31 July 2008, p. 19.

[7]        Mr Nigel Ray, Treasury, Senate Estimates Hansard, 3 June 2008, p. 55.

[8]        Mr Nigel Ray, Treasury, Senate Estimates Hansard, 4 June 2008, p. 8.

[9]        Mr Paul McCullough, Treasury, Proof Committee Hansard, 31 July 2008, p. 17.

[10]      Mr Marty Robinson, Treasury, Proof Committee Hansard, 31 July 2008, p. 18.

[11]      Mr Nigel Ray, Treasury, Senate Estimates Hansard, 3 June 2008, p. 62; Mr Marty Robinson, Proof Committee Hansard, 31 July 2008, p. 18.

[12]      Australian Health Insurance Association, 'Treasury figures show an additional 900 000 Australians will rely on the public hospital sector', Media Release, 17 May 2008, p. 1.

[13]      Access Economics, 'Health and the 2008–09 Federal Budget', May 2008, p. 6.

[14]      Access Economics, 'Health and the 2008–09 Federal Budget', May 2008, p. 5. The same point was made by Access Economics in their report released for iSelect on 8 May 2008 titled 'The impact of the changes to the income thresholds for the Medicare Levy Surcharge', p. 4.

[15]      0.32 times their estimate of the average premium of $1360

[16]      Access Economics, 'Health and the 2008–09 Federal Budget', May 2008, p. 6.

[17]      Access Economics, 'Health and the 2008–09 Federal Budget', May 2008, p. 6.

[18]      Access Economics, report released for iSelect, 'The impact of the changes to the income thresholds for the Medicare Levy Surcharge', 8 May 2008, p. 9.

[19]      Access Economics, report released for iSelect, 'The impact of the changes to the income thresholds for the Medicare Levy Surcharge', 8 May 2008, p. 19.

[20]      Professor John Deeble, Submission 3, p. 5.

[21]      'Community rating' refers to the requirement that insurers are not permitted to discriminate on the basis of risk indicators such as existing health, occupation or dietary habits. Most other insurance markets adopt 'risk rating' whereby a person's personal details can and do affect their premiums. See Mr Ian McAuley, 'More than one health insurer is too many: the case for a single insurer, Centre for Policy Development, July 2008, p. 12. iSelect, Submission 8, p. 10. See J. Brogden, Proof Committee Hansard, 31 July 2008, pp. 24–25.

[22]      AHIA notes that this is based on PHIAC's current average hospital contribution.

[23]      Australian Health Insurance Association, Submission 12, p. 6. Dr M. Armitage, Proof Committee Hansard, 31 July 2008, p. 3.

[24]      John Deeble, Submission 3, p. 8.

[25]      Access Economics, report released for iSelect, 'The impact of the changes to the income thresholds for the Medicare Levy Surcharge', 8 May 2008, p. 14.

[26]      Mr David Kalisch, Proof Committee Hansard, 12 August 2008, p. 4.

[27]      Department of Health and Ageing, Proof Committee Hansard, 12 August 2008, p. 4; BUPA Australia, Proof Committee Hansard, 6 August 2008, p. 3; Access Economics, report released for iSelect, 'The impact of the changes to the income thresholds for the Medicare Levy Surcharge', 8 May 2008, p. 14.

[28]      Australian Bureau of Statistics, Household Expenditure Survey 2003–04, 6530.0.

[29]      This figure is deduced from Treasury's 2008–09 savings estimate of $232 million.

[30]      Australian Health Insurance Association, Submission 12, p. 9.

[31]      In a Media Release dated 17 May 2008, AHIA used a dropout figure of 908 000 (rather than 913 000) on (the same) average hospital benefit of $484 per annum to calculate that '...State Governments would require an additional $439 million in 2008/09 to cover the hospital costs of these newly reliant people'. Australian Health Insurance Association, 'Treasury figures show an additional 900 000 Australians will rely on the public hospital sector', Media Release, 17 May 2008, p. 1.

[32]      Australian Health Insurance Association, Submission 12, p. 10.

[33]      Tasmanian Government, Budget Paper No. 2, Volume 1, 2008–09, Table 6.4, p. 6.12 (Footnote 4).

[34]      These figures relate to insured people under the age of 50.

[35]      This figure relates to insured people under the age of 50.

[36]      Professor John Deeble, Submission 3, p. 9.

[37]      He added: 'That is less than the figure of $439 million in 2008-09 cited by the Australian Health Insurance Association on different and much broader parameters, but not by a different order of magnitude.' Professor John Deeble, Submission 3, pp. 9–10.

[38]      Professor John Deeble, Submission 3, p. 12.

[39]      This analysis used Treasury's estimate of 485 000 policyholders leaving the private health funds.

[40]      Dr Robyn Lawrence, Proof Committee Hansard, 15 July 2008, p. 3.

[41]      Access Economics, report released for iSelect, 'The impact of the changes to the income thresholds for the Medicare Levy Surcharge', 8 May 2008, p. 18.

[42]      Access Economics, report released for iSelect, 'The impact of the changes to the income thresholds for the Medicare Levy Surcharge', 8 May 2008, p. 18.

[43]      Department of the Treasury, Submission 14, p. 2.

[44]      Mr Marty Robinson, Treasury, Proof Committee Hansard, 31 July 2008, p. 18.

[45]      Mr Marty Robinson, Treasury, Proof Committee Hansard, 31 July 2008, p. 18.

[46]      Mr David Kalisch, Department of Health and Ageing, Proof Committee Hansard, 12 August 2008, p. 4.

[47]      Access Economics, report released for iSelect, 'The impact of the changes to the income thresholds for the Medicare Levy Surcharge', 8 May 2008, pp. 10–11.

[48]      Professor John Deeble, Proof Committee Hansard, 12 August 2008, p. 12.

[49]      Professor John Deeble, Submission 3, p. 11.

[50]      Professor Elizabeth Savage, Centre for Health Economics Research and Evaluation, University of Technology Sydney, Proof Committee Hansard, 31 July 2008, p. 44.

[51]      Professor John Deeble, Proof Committee Hansard, 12 August 2008, p. 12.

 

Chapter 5 - Interpreting the bill's effects

[1]        Australian Medical Association, Submission 5, pp. 2–3.

[2]        The Hon. Dr Michael Armitage, Proof Committee Hansard, 31 July 2008, p. 2.

[3]        Mr John Brogden, Chief Executive Officer, Manchester Unity, Proof Committee Hansard, 31 July 2008, p. 25.

[4]        Mr John Brogden, Chief Executive Officer, Manchester Unity, Proof Committee Hansard, 31 July 2008, p. 24.

[5]        Mr John Brogden, Chief Executive Officer, Manchester Unity, Proof Committee Hansard, 31 July 2008, p. 26.

[6]        Professor Elizabeth Savage, Centre for Health Economics Research and Evaluation, University of Technology Sydney, Proof Committee Hansard, 31 July 2008, p. 47.

[7]        Professor Elizabeth Savage, Centre for Health Economics Research and Evaluation, University of Technology Sydney, Proof Committee Hansard, 31 July 2008, p. 47.

[8]        Professor Elizabeth Savage, Centre for Health Economics Research and Evaluation, University of Technology Sydney, Proof Committee Hansard, 31 July 2008, p. 45.

[9]        Professor Elizabeth Savage, Centre for Health Economics Research and Evaluation, University of Technology Sydney, Proof Committee Hansard, 31 July 2008, p. 45.

[10]      Professor Christian Gericke, Director of the Centre for Health Services Research at the University of Adelaide, Proof Committee Hansard, 22 July 2008, p. 17.

[11]      Professor Christian Gericke, Director of the Centre for Health Services Research at the University of Adelaide, Proof Committee Hansard, 22 July 2008, p. 18.

[12]      Mr Ian McAuley, Submission 10, p. 4.

[13]      Mr Ian McAuley, Submission 10, p. 4.

[14]      Mr Ian McAuley, Submission 10, p. 4.

[15]      Professor Christian Gericke, Director of the Centre for Health Services Research at the University of Adelaide, Proof Committee Hansard, 22 July 2008, p. 19.

[16]      Professor Leonie Segal, Proof Committee Hansard, 22 July 2008, p. 16.

[17]      Professor John Deeble, Submission 3, p. 9.

[18]      Associate Professor Elizabeth Savage, Proof Committee Hansard, 31 July, p. 45.

[19]      Professor John Deeble, Proof Committee Hansard, 12 August 2008, p. 11 and pp. 13–14.

[20]      See Mr Robert Bransby, Proof Committee Hansard, 15 July 2008, p. 25; Mr Graeme Gibson, Proof Committee Hansard, 15 July 2008, p. 32; Mr Byron Gregory, Proof Committee Hansard, 22 July 2008, p. 3; Professor John Deeble, Proof Committee Hansard, 12 August 2008, p. 17.

[21]      Mr Mark Fitzgibbon, Proof Committee Hansard, 31 July 2008, p. 12.

[22]      Proof Committee Hansard, 31 July 2008, p. 9.

[23]      Professor Elizabeth Savage, Centre for Health Economics Research and Evaluation, University of Technology Sydney, Proof Committee Hansard, 31 July 2008, p. 50.

[24]      Professor John Deeble, Proof Committee Hansard, 12 August 2008, p. 15.

[25]      Mr Ian McAuley, Submission 10, p. 6.

[26]      Mr Ian McAuley, Submission 10, p. 6.

[27]      The Hon. Peter Costello, Appropriation Bill (No. 1) 1996–97, Second Reading Speech, 20 August 1996.

[28]      Mr Marty Robinson, Proof Committee Hansard, 31 July 2008, p. 21.

[29]      John Small Health Advisory, Submission 17, p. 3.

[30]      Health Insurance Restricted Membership Association of Australia, Submission 13, p. 3.

[31]      Proof Committee Hansard, 31 July 2008, p. 58

[32]      Proof Committee Hansard, 31 July 2008, p. 63. See also, Australian Private Hospitals Association, Submission 4, pp 2 and 5.

[33]      John Small Health Advisory, Submission 17, p. 3. This argument was also made by the Australian Health Insurance Intermediaries Association, Submission 6, p. 3.

[34]      Mr Terry Barnes, Submission 19, p. 16.

[35]      Mr Michael Cribbin, Submission 22.

[36]      Although not stated explicitly, it seems that Mr Cribbin is not in a fund, and incurs the MLS while also self insuring.

 

Dissenting Report of the Australian Greens

[1]        Australian Government, Budget Paper No. 3, Table B2.

[2]        Professor Segal, Proof Committee Hansard, 22 July 2008.

[3]        Submission 11

[4]        See Submissions 2 and 10.

[5]        Professor John Deeble, Submission 3.

[6]        Proof Committee Hansard, 12 August 2008, pp. 7–8.