Private Healthcare InsuranceHealth insurance
"As a result of this rate adjustment, a singles individual will be paying an additional $1.14 per annum on a weekly basis and a families an additional $2.35 per annum on a weekly basis," he said in a Wednesday declaration. However, opposing healthcare spokesperson Catherine King said the above increase would be a big hit among families' budget, forcing more to unload their private medical insurance.
"Already downgraded or their private medical insurance in all-time high in reaction to unrelenting rate increases, escalating expenses out of their pockets and increasing exceptions," she said. Between 2010 and 2016, premium income increased by a good 50%, before increasing by a further 3.9% in 2017. The Australian Competition and Consumer Commission's November Private Sickness Insurance Survey found that more Australians are lowering or dropping their private medical insurance because of increasing premium rates.
Labour has sworn to hit a ceiling on large medical insurance companies to limit their annual rate increases to 2% if they win the next federal elections due in May. Medibank Private andhm were the first insurance companies to accept the increase authorized by the goverment and to increase insurance rates by an estimated 3.3%.
Medibank Private CEO Craig Drummond said this was the Group's slowest annual growth in premiums in 18 years. "Health care in Australia has averaged 4.6% higher than annual rate of inflation over the last 10 years, mainly due to more frequent and costly referrals to hospitals and an ageing population," he said in a declaration.
Meanwhile, the governing coalition has launched its own reform, which includes new regulations that allow private insurance companies to provide reduced premium rates to 18-29 year old citizens, as well as better psychological care for all clients and services for those in remote areas who need to go for healthcare. It has also implemented a new evaluation system to make it easy for individuals to opt for private insurance.
He said that the government's reform will result in a lower increase in bonuses for many clients and give them "more choice". "He added, "The challenges remain how we can maintain our ability to provide high value healthcare in Australia at an accessible cost. Suppliers' changes in rates may be above or below the federal market median, dependent on a wide range of determinants, which include types of cover and locations.