Health Funds Keep The Lid On Premiums
Sydney Morning Herald
Thursday March 2, 2000
Three of the State's largest private health insurers will not increase their premiums this year. A fourth, MBF, will keep hospital cover premiums for about 90 per cent of its members at their present rate.
That means that more than 75 per cent of people who have private insurance will not pay more for their insurance this year.
By comparison, some funds increased their premiums by more than 7 per cent last year.
Health funds are under pressure to make their coverage attractive to consumers, and most are conducting extensive advertising campaigns, competing for new members in the expected rush to join private funds before ``lifetime health cover" comes into effect. From July 1, anyone aged over 30 who does not belong to a fund will pay progressively higher premiums when and if they decide to join.
The number of people with private cover has grown steadily during the past year, largely attributed to the Federal Government's scheme to reduce every premium by 30 per cent, which this year will cost $2.2 billion.
Some of the State's smaller insurers yesterday said they would increase fees. AXA Australia, which covers 0.9 per cent of the market, announced an average national increase in premiums of 2 per cent.
Medibank Private, with a profit last year of $57.3 million, and which covers 22.4 per cent of the State's privately insured, last month announced it would have no rate rises this year. HCF (22.1 per cent of the NSW market) and NIB (11.6 per cent) also said there would be no premium increases.
MBF will increase the premiums for its most comprehensive hospital cover schemes, MBF Premium and MBF Classic, by just under 5 per cent, its spokesman, Mr David Jones, said. That would mean an extra 80c a week for a single member and $1.60 for a family.
© 2000 Sydney Morning Herald