| Publication: | The Sydney Morning Herald |
|---|---|
| Date: | 9 February 2010 |
| Section: | Breaking News |
Julian Drape
THE federal government has used new figures to declare health funds are in good shape and can deal with Labor's plan to means test the private health insurance rebate.
Health Minister Nicola Roxon says Private Health Insurance Administration Council (PHIAC) figures released today show the number of people with private cover is increasing and revenue and benefit payouts are also on the rise.
"Those who made dire predictions of a drop in the number of people in private health insurance funds have been proved wrong yet again," Ms Roxon said.
"At the end of the 2008/09 financial year, 44.5 per cent of all Australians were covered by private hospital insurance, an increase of 2.2 per cent on June 2008 figures.
"During the financial year, premium revenue for the industry increased by 7.3 per cent while benefits paid out to members increased by 9.3 per cent.
"The private health insurance industry completed the financial year in good health," Ms Roxon said.
Labor wants to means test and reduce the 30 per cent private health insurance rebate for individuals earning more than $75,000 a year and couples earning more than $150,000 a year.
In a double whammy, the wealthy will also be hit with a higher Medicare levy surcharge if they opt out of private cover.
The reforms were rejected by the Senate in September but have since been reintroduced into the lower house.
Ms Roxon said the government was taking action "to ensure the private health insurance system remains strong into the future by putting it on a fairer and more sustainable footing".
The membership, revenue and benefits figures were contained in the PHIAC's 2008/09 annual report.
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