| Publication: | The Sydney Morning Herald |
|---|---|
| Date: | 11 November 2009 |
| Section: | National |
Mark Metherell, Health Correspondent
THE Health Minister, Nicola Roxon, is heading for a showdown with health insurance funds over premium rises early next year.
Ms Roxon will today warn the funds that she is prepared to require them to revise claims for premium increases if she thinks they are unjustified. Her warning to the Australian Health Insurance Association conference comes as cost pressures in the health sector continue to climb.
The Government last week revealed a $4.8 billion leap in forecast costs over the next four years in pharmaceuticals, Medicare and the health insurance rebate. Inflation is also driving up costs in the private sector and health funds will struggle to keep premium increases below 5 per cent after last year's 6 per cent rise.
Ms Roxon said she was determined that premium increases should be ''the minimum necessary to ensure affordability and value of private health insurance''.
''This may involve requesting resubmissions, as was the case for many funds last year.''
Funds have to lodge applications for premium adjustments by November 20. New premiums will take effect in April next year.
Ms Roxon defended the Government's so far unsuccessful bid to introduce means testing for the private health insurance rebate: ''We clearly do not believe that subsidising the insurance of millionaires is more important than investing in more doctors and nurses, chronic diseases, cancer care and hospital infrastructure.''
The majority of high-income earners did not keep their insurance because of the 30 per cent rebate. Research had shown that three-quarters of high income-earners regarded private insurance essential, with the main reasons being security and peace of mind.
She said a survey by market research firm Ipsos had shown that with proper advice on the proposed changes only a tiny number - 15,000 people - would drop insurance.
The changes were rejected by the Senate in September but Ms Roxon said she was likely to reintroduce the legislation in the next fortnight, the last sittings of Parliament this year.
She said the private-public mix of services and resulting competition was one of the many strengths of the Australian health system.
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