Families To Face Health Cover Rise
The Age
Wednesday June 2, 1999
Families will be slugged about $100 extra a year for their private health insurance under premium increases announced yesterday.
The Federal Government has approved an average premium increase of 4.9per cent across Australia's health funds, adding about $2 a week to a family's health cover bill.
The increases come just five months after the Government implemented its $1.7billion 30 per cent private health insurance rebate.
The health funds have blamed the increases primarily on the rising costs of medical treatments and technology and an ageing membership.
But consumer groups and doctors have condemned the increases, saying they will do nothing to help attract badly needed members.
The federal Health Minister, Dr Michael Wooldridge, said most of Australia's 44 health funds were non-profit organisations, and to block the increases would have plunged several into deep financial difficulty.
``Fund rises have all been assessed by the Federal Government to ensure there is a clear and obvious financial need for the adjustment," he said.
Of the 44 health funds, 36 sought a premium increase while eight did not lift prices.
The federal Opposition's health spokeswoman, Ms Jenny Macklin, said that, after the introduction of the rebate, private health fund members should not be faced with another premium increase. The rebate had failed both to attract significant numbers into health funds and to keep premiums down, she said.
Australia's biggest private health insurer, Medibank Private, kept its premium increases to an average of 1.9 per cent, the lowest rise in its fund's 23-year history.
Most of the insurer's 316,000 Victorian members face increases of between 15 cents and 56 cents a week on their cover from 10June, although 10 per cent will not be hit with any rise.
HBA said its average premium increase of 4.2 per cent was the smallest rise in five years.
HBA, which offers a controversial no-gaps policy at the Melbourne Private Hospital, is introducing the increases on 21 June.
Australian Unity said its premium increases would be limited to an average of 3.9 per cent, while MBF said it would keep its premium rises to less than 6 per cent.
Table: Comparison of monthly cost of comprehensive hospital cover, without excess and taking the Government's 30 per cent rebate into account. Fund $ before increase $ after increase Australian Unity Hospital singles 73.65 75.70 families 147.35 151.40 HBA Hospital singles 74.65 76.25 families 149.35 152.50 Medibank Private (Blue Ribbon) singles 68.52 69.28 families 137.04 138.56
© 1999 The Age