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Health cover for gym shoes, CDs and tents to be phased out

The Federal Minister for Health and Ageing, Kay Patterson, has announced that private health funds had agreed to phase out gym shoes, CDs, tents and golf clubs from the ancillary benefits. Withdrawal of benefits for 'lifestyle' ancillaries would be subject to approval from the ACCC.

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KP05/03
February 12, 2003

Health cover for gym shoes, CDs and tents to be phased out

The Federal Minister for Health and Ageing, Kay Patterson, today announced that private health funds had agreed to phase out gym shoes, CDs, tents and golf clubs from the ancillary benefits.

Withdrawal of benefits for "lifestyle" ancillaries would be subject to approval from the Australian Competition and Consumer Commission, she said.

Senator Patterson said the private health industry had agreed it was important that ancillary benefits deliver direct health benefits to health fund members.

She said agreement had been reached with the Australian Health Insurance Association that ancillary items should not extend to cover equipment purchased for sport, recreation or entertainment activities.

She asked the industry last year to review its products to ensure they only funded things which had a direct health benefit.

This would exclude things such as: sporting equipment, sporting clothes, musical equipment and items used for outdoor recreation.

Senator Patterson said the AHIA had also agreed it would scrap gym shoes and gym membership from ancillary tables.

Ancillary benefits for diabetes and asthma education programs, Quit smoking courses, weight management, women's health, stress management and other similar programs would be retained. Gym membership, required as part of a health management program, would also be retained.

The cost of so-called "lifestyle" ancillary benefits, which included disease prevention measures, was about $70 million a year compared to the total payout of $6.4 billion in benefits each year.

Senator Patterson said: "Health management programs are not being phased out. One of the main challenges facing the health of the nation is to prevent more health problems before they develop further.

"Encouraging people to manage their health is more cost effective than waiting until they have a chronic disease or end up in hospital."

She said the Labor Party refused to give any undertaking to retain the 30% Private Health Insurance Rebate, which, on average, delivers $750 a year to the family budget.

Media inquiries, contact Randal Markey, Media Adviser, Senator Patterson's office, 02 6277 7220.