Release of Private Health Insurers Annual Report 2008-09

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PDF printable version of Release of Private Health Insurers Annual Report 2008-09 (PDF 17 KB)

9 February 2010

Those who made dire predictions of a drop in the number of people in private health insurance funds have been proved wrong yet again. The latest figures released today by the Private Health Insurance Council show that the numbers of Australians taking out private health insurance continues to grow.

The Operations of the Private Health Insurers Annual Report 2008-09 shows the private health insurance industry completed the financial year in good health, with the number of people covered by private health insurance, revenue and benefit outlays all increasing.

At the end of the 2008-09 financial year, 44.5 per cent of all Australians were covered by private hospital insurance, an increase of 2.2 per cent on June 2008 figures. During the financial year, premium revenue for the industry increased by 7.3 per cent while benefits paid out to members increased by 9.3 per cent.

Figures released towards the end of last year confirm strong membership figures are a continuing trend. At the end of the September 2009 quarter, 44.7 per cent of all Australians were covered by private hospital insurance. This is the highest proportion of people with hospital insurance since December 2001.

The Government is taking action to ensure the private health insurance system remains strong into the future, by putting it on a fairer and more sustainable footing.

Currently the Government subsidises the private health insurance of all Australians, regardless of their income. Amendments proposed by the Rudd Government mean subsidies will be provided to those most in need, including all singles earning up to $120,000 per year, and couples on less than $240,000. This means that receptionists and hospital cleaners would no longer have to subsidise the private insurance enjoyed politicians and millionaires.

Treasury modelling estimates that after these reforms 99.7 per cent of people will remain in private health insurance thanks to the maintenance of incentives such as Lifetime Health Cover and the Medicare Levy Surcharge.

Making reforms such as this allows the Government the financial flexibility to invest in better services, new medicines and improved technology.

The Operations of the Private Health Insurers Annual Report 2008-09 is prepared by the Private Health Insurance Administration Council (PHIAC) and is based on statistics collected by the Council throughout the financial year.

For all media inquiries, please contact the Minister's Office on 02 6277 7220