Health funds set to raise premiums by around six per cent

Julian Drape

Article excerpt:

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.

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.

... Opposition health spokesman Peter Dutton says today's news will hurt members. Health funds hiked their premiums higher to offset the federal government's attack on their private health insurance policies, Mr Dutton said. "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.

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