Senator LUDWIG (Queensland—Minister for Agriculture, Fisheries and Forestry and Minister Assisting on Queensland Floods Recovery) (14:55): I thank Senator Xenophon for his supplementary question. One of the areas of course—and I will go to it again—is that, as previously noted, it is a matter that private hospitals are free to set their own charges. There is no role for the Commonwealth in that area. The Commonwealth only regulates the private health insurance benefits, but any contracted level of benefits that a private health insurer will pay to a hospital for an episode of treatment is and remains a commercial matter between the parties. It should be noted for the purposes of private health legislation though, that each state and territory is, and is regarded as, a separate risk equalisation jurisdiction. In Australia private health insurance is not risk rated like most forms of insurance. Instead, the government requires all insurers to offer community rated policies to ensure that premiums paid by consumers— (Time expired)