| Publication: | news.com.au |
|---|---|
| Date: | 23 February 2010 |
| Section: | Breaking News |
Julian Drape
FAMILIES will have to pay more for private health insurance from April after the federal government approved a hike in premiums.
Health Minister Nicola Roxon has approved an average 5.78 per cent increase in private health premiums.
That's an additional $1.70 a week for individuals paying $1500 a year, and $3.30 a week more for families with a $3000 policy.
Ms Roxon said the increase would have been higher without her intervention.
"I required resubmission from more than half the health funds and as a result the premium increases for 8.5 million Australians have been reduced,'' Ms Roxon said in a statement.
This year's 5.78 per cent rise is lower than last year's increase of 6.02 per cent. But it's higher than 2008's 4.99 per cent rise.
Of the big funds, MBF put its premiums up 5.62 per cent, Medibank Private jumped 5.74 per cent, HCF escalated by 5.94 per cent and NIB lifted its prices by 5.95 per cent.
The Australian Health Insurance Association says the extra money is needed to ensure funds remain viable.
"While the industry is aware a premium change is never welcomed, most Australians understand if benefits paid out on their behalf increase by 10 per cent, there will need to be an increase in premiums too,'' the association said in a statement.
Funds paid out benefits worth $11 billion in the last financial year, up 9.3 per cent on the previous 12 months.
Benefits are forecast to further increase by 7.94 per cent for the year to March 2011.
Opposition health spokesman Peter Dutton says today's news will hurt members.
In 2007, Ms Roxon - then in opposition - claimed a 4.5 per cent rise was bad for Australian families, he said.
"Well, this is dreadful news for Australian families and the Rudd government's to blame for it,'' he said.
Health funds hiked their premiums higher to offset the federal government's attack on their private health insurance policies, Mr Dutton said.
He argued the increase proved the coalition was right to block Labor's plan to means test the private health insurance rebate for a second time.
"Australian families under Mr Rudd's attack on private health insurance are going to pay more for their private health insurance.''
Coalition senators spent today arguing against the government's move to reduce the 30 per cent health insurance rebate for individuals earning more than $75,000 a year and couples earning more than $150,000.
It broke an election promise, they said.
While not a single government senator defended the legislation in the upper house, Finance Minister Lindsay Tanner and Ms Roxon took up the cudgels in the House of Representatives.
"I do not see the logic of why ordinary working people on 50 or 60 grand a year should have their taxes paying subsidies to my private health insurance when many of those same working people cannot afford private health insurance themselves,'' Mr Tanner said during Question Time.
Ms Roxon wildly waved a golf ball at Opposition Leader Tony Abbott to prove he neglected health altogether when in charge.
"The (then) minister produced, in response to the workforce shortages covering 74 per cent of the country, a golf ball which says 'doctor vacancy','' she said.
A vote on the changes to private health insurance in the Senate is expected later this week.
If the legislation is defeated - as it almost certainly will be - the government could call on early double-dissolution election on the issue.
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