Good News on Health Insurance

Sensible federal government policies have made it possible for Australia’s health funds to halt high levels of inflation for private health insurance, the Chief Executive of the Australian Health Insurance Association, Russell Schneider, said today.

Mr Schneider said increased membership arising from the Federal Government’s 30-percent rebate and the introduction of Lifetime Cover had made it possible for many health funds to avoid price rises altogether and for others to keep them around the general inflation rate.

This was in marked contrast to previous years when declining membership, withdrawal of government support for people wanting private health care, and spiralling costs dramatically increased health fund premiums.

Mr Schneider applauded the industry’s moves to contain costs. Eight health funds covering 37 percent of the insured population would not increase their rates at all this year. More than one-third of the insured population would face no increase in rates this year, while others would make marginal adjustments compared with previous years.

Any increases in premiums above the general inflation rate could generally be attributed to the funds concerned either increasing benefit payouts or having held rates down artificially in previous years.

Some health funds had either just introduced new gap coverage schemes or were planning to do so and this had been included in rate setting.

Mr Schneider said the move towards price stability in health insurance would not have been possible without the support the Federal Government had provided to allow people to choose their health care options.

Canberra - Wednesday 1 March 2000

For further information please contact Russell Schneider via the Secretariat on telephone (02) 6285 2977 or after hours today on telephone (03) 9653 0000.