This bill became law on Mar 16th, 2023.
Health, care & disability
Private health insurers must now pay set benefits for listed medical devices and human tissue products, not just items described as prostheses.
The old Prostheses ListThe old name for the list of medical devices and tissue products that private insurers must help pay for. rules were too vague about which products qualified and used outdated cost-recovery arrangements. This bill tightens eligibility to defined medical devices and human tissue products, renames the list, and gives the Private Health Insurance Act machinery to charge cost-recovery fees and administer unpaid fees or levies, while the separate companion fees bill imposes the levyA separate charge on listed product kinds, imposed under the companion fees legislation, whose unpaid amounts this bill helps the Private Health Insurance Act administer. itself.
Private health insurers were already required to pay set benefits for items on the Prostheses ListThe old name for the list of medical devices and tissue products that private insurers must help pay for., but the scheme had grown into a large, loosely defined list with charges that no longer matched the government’s cost-recovery rules, while higher private-sector device prices were identified as a contributor to rising premiums. After the May 2021 budget committed money to modernise the list, this bill renamed and tightened it around defined medical devices and human tissue products and added Private Health Insurance Act machinery for cost-recovery fees and unpaid fees or levies, alongside a separate fees bill that imposed the levyA separate charge on listed product kinds, imposed under the companion fees legislation, whose unpaid amounts this bill helps the Private Health Insurance Act administer. itself.
The main criticism was that the bill left too much of the real scheme to later regulations, creating uncertainty about cost recovery, consultation and how changes would affect patients, hospitals and suppliers in practice. Those concerns were raised mainly by Coalition speakers who still supported the bill, while a separate unsuccessful Senate amendment sought stronger checks that savings would actually reach consumers.
Ged Kearney MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 16 Mar 2023
Final passage
Passed without a counted vote
2 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.
Passage speed
105 days
From introduction to the latest recorded parliamentary step
Meaning
Private health insurers must now pay set benefits for listed medical devices and human tissue products, not just items described as prostheses.
Private health insurance benefits are now limited to products that fit clearer legal definitions of medical devices or human tissue products, which tightens what can be covered.
Medical deviceA product that is treated as eligible for the list only if it fits the bill's narrower legal definition, not just because it is a prosthesis. and tissue product companies can now be charged cost-recovery fees for government work involved in assessing and managing the private health insurance list.
Listed products can be removed and applications or other processing can be stopped if required fees or levies are not paid.
The bill works with the separate fees bill by giving the private health insurance law machinery to administer fees and levies, including stopping processing or delisting products when required amounts remain unpaid.
Omit “a prosthesis, of a kind listed in the Private Health Insurance (Prostheses) Rules”, substitute “a *medical device or *human tissue product, of a kind listed in the Private Health Insurance (Medical Devices and Human Tissue Products) Rules”.Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery) as-passed bill text
The Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery) Bill 2022 (PHI Bill) amends the PHI Act to better define the products that may be eligible for inclusion on the Prostheses List. The PHI Bill amends the PHI Act to include definitions of ‘medical device’ and ‘human tissue product’ that are aligned (where relevant) to the Therapeutic Goods Act 1989. The practical effect of these amendments is to clarify that set benefits are only payable for medical devices or human tissue products that meet these definitions (in addition to other criteria which will be set out in the legislative instrument).Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery) explanatory memorandum
(1) The Private Health Insurance (Medical Devices and Human Tissue Products) Rules may specify fees (cost‑recovery fees) that may be charged in relation to activities carried out by, or on behalf of, the Commonwealth in connection with the performance of functions, or the exercise of powers, conferred by or under this Act in relation to the list of kinds of *medical devices and *human tissue products in the Private Health Insurance (Medical Devices and Human Tissue Products) Rules.Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery) as-passed bill text
provide for items to be removed from the PL, and for processing and other activities to cease, where fees or levies remain unpaid;Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery) explanatory memorandum
The new cost recovery provisions established by the PHI Bill include... provide for items to be removed from the PL, and for processing and other activities to cease, where fees or levies remain unpaid;Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery) explanatory memorandum
Context
Private health insurers were already required to pay set benefits for items on the Prostheses ListThe old name for the list of medical devices and tissue products that private insurers must help pay for., but the scheme had grown into a large, loosely defined list with charges that no longer matched the government’s cost-recovery rules, while higher private-sector device prices were identified as a contributor to rising premiums. After the May 2021 budget committed money to modernise the list, this bill renamed and tightened it around defined medical devices and human tissue products and added Private Health Insurance Act machinery for cost-recovery fees and unpaid fees or levies, alongside a separate fees bill that imposed the levyA separate charge on listed product kinds, imposed under the companion fees legislation, whose unpaid amounts this bill helps the Private Health Insurance Act administer. itself.
Data highlights much higher private implant costs
Private health funds said private patients were paying about $729 million more for implantable medical devices than public-hospital patients, sharpening attention on prostheses pricing.
Australian Financial Review ↗Budget commits to modernising the Prostheses ListThe old name for the list of medical devices and tissue products that private insurers must help pay for.
The 2021-22 federal budget committed $22 million over four years to modernise and improve the Private Health Insurance Prostheses ListThe old name for the list of medical devices and tissue products that private insurers must help pay for..
Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery) explanatory memorandum ↗Bill introduced to tighten the list and update cost recovery
The government introduced the bill as the first tranche of reforms to define eligible products more clearly and update cost-recovery administration under the Private Health Insurance Act.
Parliamentary timeline ↗Parliament passes the bill
Both houses passed the bill, clearing the way to rename the Prostheses ListThe old name for the list of medical devices and tissue products that private insurers must help pay for., narrow eligible products and administer cost-recovery fees and unpaid levies through the Private Health Insurance Act.
Parliamentary timeline ↗Royal Assent makes the reforms law
Royal Assent enacted the changes that limited set benefits to defined medical devices and human tissue products and allowed unpaid fees or levies to halt processing or lead to delisting.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step. For this bill, the Federation Chamber reported back later the same day and the House then completed its remaining formal steps that day.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Second reading debate
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step. The official House record shows the referral out and return both happened on the same day, before the House moved to its final formal votes.
Reported from Federation Chamber
The chamber agreed to the bill at third reading, which completed passage through that chamber. Later message exchanges with the other chamber were still recorded afterwards.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber considered amendments before the bill moved to the next stage.
Committee of the Whole debate
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill reached this recorded parliamentary step.
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form. The main accepted Senate changes reflected in the final bill were: The introduced and as-passed bill texts differ in 2 observed text blocks. Observed added text: "72‑27 Matters to have regard to before exercising certain powers In deciding whether to exercise a power under section…".
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal Assent, turning the bill into an Act.
Key criticism
The main criticism was that the bill left too much of the real scheme to later regulations, creating uncertainty about cost recovery, consultation and how changes would affect patients, hospitals and suppliers in practice. Those concerns were raised mainly by Coalition speakers who still supported the bill, while a separate unsuccessful Senate amendment sought stronger checks that savings would actually reach consumers.
Criticism focused on drafting and implementation risk, not broad opposition to the policy goal.
Too much left to regulations
Critics said the bill was being pushed through before key operational rules were known, leaving Parliament and stakeholders without enough detail on cost recovery, subordinate rules and practical effects on patients and hospitals.
No guarantee savings would flow through
A further concern was that lower device costs might not automatically benefit consumers unless competition and pricing behaviour were monitored, including whether any savings were passed on in premiums.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
The House agreed to the amendments made by the Senate, so the bill could pass both chambers in the same form.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Senate
Defeated 13 to 26. Support came from Greens, Jacqui Lambie Network, and minor parties and independents. Opposition came from Labor, Liberal Party, and Nationals.
The Senate rejected the Greens statement criticising private health insurance subsidies while allowing the bill package to continue.
Defeated 14 to 30. Support came from Greens, Jacqui Lambie Network, and minor parties and independents. Opposition came from Labor, Liberal Party, and Nationals.
The Senate rejected David Pocock’s proposal for extra ACCCThe competition regulator, which one proposed amendment wanted to report on private health insurance conduct and savings pass-through. reporting on private health insurance practices and whether prostheses savings reached consumers.
The Senate added a government amendment requiring the minister to consider insured persons’ interests and doctors’ professional freedom before using certain powers.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
The parliamentary record also shows 1 Government amendment agreed without a counted division.
Parliamentary debate
Start here — lead voices
Ged Kearney supports the bill because it is meant to keep private health insurance premiums down, improve cost recovery, and give consumers better value for money without affecting access or choice.
Read in Hansard ↗Ruston says the coalition will support the bill and wants it to pass, because it is part of long-running reforms to modernise the Prostheses ListThe old name for the list of medical devices and tissue products that private insurers must help pay for. and protect private health insurance.
Read in Hansard ↗Sharkie supports the bill because it begins to fix long-running overpricing and administration problems in medical deviceA product that is treated as eligible for the list only if it fits the bill's narrower legal definition, not just because it is a prosthesis. and prostheses pricing.
Read in Hansard ↗Freelander supports the bill and says it will make device pricing more transparent, reduce costs, and help keep private health insurance affordable so patients can keep access to the latest medical technology.
Read in Hansard ↗All speeches by bloc
5 speakers · 6 contributions · 5 support
“I congratulate the health minister and the Albanese Labor government for bringing this bill to the House. It seeks to improve not only how we fund our devices but gives more transparency in how we fund them and it will allow the private hospitals and the private insurance providers to understand better the costs and reduce their own cost, which will, in time, reduce premiums and premium rises, and will encourage people to stay in private health insurance.”Read the full speech in Hansard ↗
“I rise to support these bills as they seek to implement and modernise and improve the private health insurance Prostheses List. We know that the proposed legislation would amend private health insurance legislation to better define the items for which set benefits are paid by private health insurers so that these benefits are only payable for medical devices or human tissue products that meet specific definitions.”Read the full speech in Hansard ↗
“The measures in this Bill are important as they will broadly support further reform activity aimed at keeping downward pressure on private health insurance premiums by reducing the costs associated with medical devices and human tissue products.”Read the full speech in Hansard ↗
“These bills will modernise and improve administrative processes and cost recovery arrangements. They are long-awaited improvements that will assist in keeping downward pressure on private health insurance premiums by reducing the costs associated with medical devices and human tissue products.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Ged Kearney on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Ged Kearney supports the bill because it is meant to keep private health insurance premiums down, improve cost recovery, and give consumers better value for money without affecting access or choice. She says it will modernise the system, increase transparency, and help keep medical devices and human tissue products affordable.
“The measures in this bill are important, as they will broadly support further reform activity aimed at keeping downward pressure on private health insurance premiums by reducing the costs associated with medical devices and human tissue products.”Read this contribution in Hansard ↗
Second reading speech
Ged Kearney supports the bill, saying it modernises the private health insurance Prostheses ListThe old name for the list of medical devices and tissue products that private insurers must help pay for., clarifies the product definitions, and updates cost recovery arrangements to make the system more sustainable. She argues the changes will help reduce costs and improve affordability for consumers.
“The first bill I introduced was the Private Health Insurance Legislation Amendment (Medical Device and Human Tissue Product List and Cost Recovery Recovery) Bill 2022. The bill inserts definitions of medical devices and human tissue products into the legislation, which will better define the kinds of products that, along with the additional criteria contained in the legislative instrument, will be considered eligible for set benefits from private health insurers. The bill also provides for the renamed Private Health Insurance (Medical Devices and Human Tissue Products) Rules. This new name is reflective of the modernised and amended scope of the legislation. The bill also updates the cost recovery arrangements to support predictable and sustainable fee-for-service arrangements.”Read this contribution in Hansard ↗
4 speakers · 4 support
“It's really important that we pass this legislation as the process has been undertaken in great faith. These bills present the first tranche of the legislative changes required to actually implement a coalition 2021-22 budget measure—modernising and improving the private health insurance Prostheses List. It has been hard-fought. The coalition are absolutely happy to support the process and the progression of these bills because they do do some very important things.”Read the full speech in Hansard ↗
“Having made those introductory comments, I'll move now to some of the particulars of the legislation in this case. The coalition, of course, supports this legislation. It reflects much of the work that was done by the coalition government. This is an example of an orderly transition in our democratic government, with policies which were introduced by a prior government being continued under the next government where they're in the best interests of the Australian people. It is something we should acknowledge.”Read the full speech in Hansard ↗
“We are supportive of this bill, but we're putting the government on notice: they cannot continue to expect us to pass bills without seeing any of the substantive detail. I urge the government to address the significant challenges the industry faces, and to engage with them and to provide in a timely way those details that are currently missing.”Read the full speech in Hansard ↗
“We are supportive of this bill, but we're putting the government on notice that they cannot continue to expect us to pass bills in this place without seeing any of the substantive details. Modernising and improving the Prostheses List is an important reform process, and the patients who would benefit from the reforms deserve to have the details properly considered.”Read the full speech in Hansard ↗
1 speaker · 1 support
“I am therefore pleased to hear that the government is currently exploring future work on a more robust compliance framework, and I encourage the government to move as quickly possible on this to further reduce health insurance premiums and lower the cost of living for millions of Australians. I commend this bill to the House, and I support it.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Committee of the whole: amendments considered
Amendment packages agreed
The chamber considered amendments before the bill moved to the next stage.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
House · Message from Senate reported
Message from Senate reported
The bill reached this recorded parliamentary step.
House · Consideration of Senate message
Consideration of Senate message
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal Assent, turning the bill into an Act.
