22 Jan 2015

We privatise Medibank with generouse fees included in the sale, surprise,surprise, all other funds expect similar price rises

A new umbrella for health funds

Health insurance premiums to surge

Forget the inflation rate, this is a new ball game, there is no government entity in the game any more.

Analysts said recently they "see little surprise potential" on the basis that "Medibank has effectively pre-announced its 2015 price rises within the prospectus [6.5 per cent]."

Private health insurance customers are set to be hit with premium increases of up to triple the rate of inflation.

In addition to facing a potential $5 co-payment when they visit their general practitioners from July, the 11 million Australians with private health cover will also have to stomach premium rises in the range of 6 to 7 per cent from April 1, insurance bosses say.

Executives in the $19 billion industry have blamed the latest hit to household healthcare budgets on the increased use of services, rising care costs and more expensive medical technology.

"I expect premium increases will be consistent with the level of claims inflation the industry is experiencing which is between 6 to 7 per cent typically," said the chief executive of listed insurer nib, Mark Fitzgibbon.

So for some reason health funds have costs that are treble what citizens experience.

Each year health funds ask the government to approve annual increases to the cost of their policies on the basis of how much they expect the cost of paying private hospitals and medical providers for care to rise. This is known as claims inflation.

With a government that obviously favors business don't expect any arguments from their friends when they submit their wish list.

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