| Publication: | The Advertiser |
|---|---|
| Date: | 2 March 2009 |
Laura Anderson, Political Reporter, Canberra
PRIVATE health insurance premiums will rise by 6.02 per cent from April 1.
Health Minister Nicola Roxon said she had written to several funds to challenge their requests for even larger premium rises.
"Without that close scrutiny, premium rises would have been higher for up to eight million Australians," she said.
"This year's increase is the result of increased benefits paid to patients, rising health service costs, and investment losses from the global financial crisis."
This compares to a rise of 4.99 per cent under the Rudd Government in 2008, and an average rise of 6.63 per cent over the last five years of the Howard Government.
Private health funds have been warning of above-inflation premium rises, due to the Federal Government's changes to the Medicare levy surcharge threshold.
Under Labor's changes, uninsured singles can earn $70,000 a year and couples $140,000 before being forced to pay the 1 per cent surcharge.
Treasury estimated that 492,000 people would drop their private health cover as a result of the new legislation.
This was expected to flow through to premiums, Access Economics predicting premiums would rise by 10 per cent a year.
However, figures released by the Private Health Insurance Administration Council in February watered down this argument.
In the December 2008 quarter, an additional 54,000 Australian took out private health cover.
This defied predictions of a mass exodus from private health insurance.
