Crying Wolf on Private Health Insurance Changes
The Minister for Health and Ageing, Nicola Roxon, said the Federal Coalition and private health insurance industry should stop crying wolf about proposed changes to the private health insurance rebate system.
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27 May 2011
It’s time the Federal Coalition and private health insurance industry stopped crying wolf about the Government’s proposed changes to make the private health insurance rebate system fairer, Minister for Health and Ageing Nicola Roxon said today.
The Coalition predicted dire consequences for the private health industry when the Government made changes to the Medicare Levy Surcharge in 2008 – which did not eventuate.
In 2008 Peter Dutton predicted that 1 million people would leave private health insurance as a result of the Government's 2008 Medicare Levy Surcharge changes:
“…it's unbelievable that a Health Minister could believe that they could put forward a bill which would drive up the premiums on private health insurance, drive up to a million people out of private health insurance, onto the public hospital queues…” (25/9/2008).
Similarly, Joe Hockey predicted a massive increase in private health insurance premiums as a result of the 2008 Medicare Levy Surcharge changes:
"If they deliver the Medicare surcharge changes, there is no argument from anyone against the proposition that private health insurance premiums for 10.7 million Australians will rise probably about 12 per cent - well above inflation (7/9/2008).
In fact, private health insurance membership levels have continued to rise and premium increases have been maintained at lower levels under Labor than they were when Tony Abbott was Health Minister:
- Since the Medicare Levy Surcharge changes came into effect in 2008, private health insurance membership has increased by around 566,00. At 10.2 million, hospital cover membership is now at its highest level since 1982;
- The average annual premium increase under Labor is less than half Joe Hockey’s prediction (just under 6%) and is lower than the average under the Opposition Leader (6.44%) and the average for the last five years of the Howard Gov (6.63%).
The Coalition and the private health insurance industry’s dire predictions about private health insurance changes could not be believed in 2008 – and they shouldn’t be believed now.
For more information, contact the Minister's Office on (02) 6277 7220
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