From my private health insurance provider:
Some Natural Therapies will lose coverage:
The government have conducted a thorough review of natural therapies and have decided Health Funds in Australia are no longer able to pay a benefit towards certain services.
Alexander technique, aromatherapy, Bowen therapy, Buteyko, Feldenkrais, herbalism, homeopathy, iridology, kinesiology, naturopathy, Pilates, reflexology, Rolfing, shiatsu, tai chi, and yoga are all being shown the door."
My question is, whilst I haven't ever participated in most of the above natural therapies, and many of them I am highly skeptical of (e.g. homeopathy), I don't understand why the government should have a say on the private insurance contract between a company and an individual?
If someone wants to use herbalism to treat some condition, and the health insurer is happy to cover this treatment, as long as the customer pays their premium, then what does it have to do with the government?
This is a good point and one that I would agree with on principle. However in this case, the answer is:
Because the government subsidises private health insurance. I assume the regulations cover the requirements to qualify as a health fund that receives the subsidy.