Premiums to rise by 6.2%

Date
    December 24, 2013


The Abbott government has approved the biggest rise in private health insurance premiums in almost a decade, as it walks away from any early implementation of its election promise to scrap the means testing of the 30 per cent rebate for health fund members.        

In a pre-Christmas whammy for Australians grappling with rising health costs, the average family policy including ancillaries such as dental is likely to rise by more than $200 a year because of the average 6.2 per cent increase for 2014 endorsed by Health Minister Peter Dutton.      

For a basic family policy, the rise will be about $150 a year. Singles can expect to pay an extra $100 a year in premiums.


For all categories, the increase is almost triple the overall rate of inflation. The last time there was a bigger increase was in 2005, when premiums rose by 7.96 per cent.      


Among the top 10 most popular health funds, the increases range from just under 3 per cent (Health Insurance Fund of Australia) to just under 8 per cent for NIB for 2014.

Mr Dutton blamed an 8 per cent increase in overall payouts by health funds this year for the sharp rise.


The former government should also be held responsible, he said, noting health insurers had been ''constantly under attack''.

''There is no doubt this increase could have been lower had it not been for the pressures placed on the sector by Labor,'' he said in a statement.

Mr Dutton declined a request for an interview to explain what these pressures were.

Opposition health spokeswoman Catherine King said the premium hike was a slap in the face for consumers and had been pushed through just before Christmas in the hope people wouldn't notice.      

''Making this announcement two days before Christmas is highly cynical and something the government should be ashamed of,'' Ms King said.            

The rise in premiums comes as the government weighs up when, and indeed whether, to scrap means testing of the 30 per cent health insurance rebate.

Under measures that came into effect last year, singles earning about $88,000 and families earning more than $176,000 no longer get the full rebate. Singles earning more than $130,000, and families with an income of twice that amount, don't get any rebate at all.

During his election campaign launch this year, Prime Minister Tony Abbott said he would scrap the means testing within a decade.

One government source said on Monday: ''Given the financial situation as revealed last week, it could be a long while [before the means test is abolished].''

The mid-year economic and fiscal outlook released last week predicted budget deficits for the next decade unless savings were found. Removing the means testing of the rebate would cost almost $3 billion over the next four years.

The Consumers Health Forum of Australia said the federal government needed to take a serious look at why health costs continued to vastly outpace inflation. An ageing population, increasing doctors fees and rising equipment costs did not adequately explain the surge, spokesman Mark Metherell said.

''There are no real measures from government to show whether we are getting value for money. Health costs have been going up more than inflation for more than a decade,'' he said. ''We feel the whole issue should be examined. Premiums are going up. Out-of-pocket costs are going up. The average family will struggle to pay this increase.''      

He said good performance and efficiency among health funds should be rewarded by the government. At the moment, they were simply being compensated for the level of payouts they have made.

Read more: http://www.smh.com.au/federal-politics/premiums-to-rise-by-62-20131223-2zurt.html#ixzz2oKjn1Y00

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Stop worrying I'mphukingcrook. We have that wonderful ALP creation Medicare to look after the nation's health.

Thanks Saladin. How could we forget the creation of Medicare.

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for F F S You don't understand SFO

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F F S   So I can get a decent refund for FS   

It means more people will opt out, putting an even bigger strain on the public health (non) system.

woody2014 wrote on Dec 24^th, 2013 at 8:11am:



The health insurance companies will do what they do. It means that those that want to stay in a health fund will continue to face substantial  price increases because there will be less customers.

At the moment health insurance is only affordable to middle income earners, like a lot of things that used to be available to everyone but the very impoverished.....electricity is fast becoming a luxury item.

Some essential services should NEVER be privatised.

Now watch the health insurance companies collapse. Keep it affordable or go out of business. They should have learned from the retail sector.

Ex Dame Pansi wrote on Dec 24^th, 2013 at 8:23am:

What thu                                 Some essential services should NEVER be privatised.