Health insurance still rising
May 17, 2012

HEALTH insurance numbers have continued to rise even while opponents were warning that the government's impending means test would drive an exodus from health funds.    

Latest official figures for the March quarter show that private hospital coverage grew by 51,782 to a record high of 10,455,462. That represents 45.7 per cent of the population.

General or extras insurance rose by even more, to cover 53.2 per cent of the population. This was while the industry and opposition warned that it was these policies that people would be likely to drop to meet the increased cost of premiums.


Under the means test to take effect on July 1, individuals earning above $84,000 and couples and families over $168,000 will incur a phased withdrawal of the 30 per cent rebate on premiums and lose it entirely on incomes above $130,000 and $260,000 respectively.   

Health Minister Tanya Plibersek said during the debate in February, Opposition Leader Tony Abbott and his health spokesman, Peter Dutton, told Parliament 175,000 people would drop out of private health insurance within a year.      

"In fact, at the time of the debate, every day more than 550 Australians ignored the Coalition's Chicken Little routine, joined health funds and ensured the industry continued to be vibrant and profitable," she said.   

Mr Dutton said Labor was more interested in spin than substance. ''A very modest increase of 0.6 per cent of the population with private hospital cover over 12 months does not reflect the impact of this broken promise, which is yet to commence,'' he said.

Read more: http://www.theage.com.au/victoria/health-insurance-still-rising-20120516-1yrmp.html#ixzz1v5O08U00

The numbers are rising because you have to pay an extra 1% medicare levy if your income is over $73/149K (single/family) unless you have full private hospital cover. So you'd be mad not to have private cover.