Hart to stand up to private health excess hike

The Federal Member for Bass, will stand up for the 7,092 families in Bass with Private Health Insurance as the Government attempts to amend Private Health Insurance Legislation to allow insurers to offer maximum excesses of $750 for singles and $1,500 for families, compared to $500 and $1,000 at present.

Unlike Labor, the Government has no real plan for to keep insurance premiums down, it is trading higher excesses for lower premiums, which creates concerns that people will not be able to pay and force them into the public system.

Northern Tasmania’s health system is already struggling with patient care. On Thursday last week as part of a Parliamentary Motion of Public Importance, Mr Hart raised the importance of properly funding our public health system, in particular the LGH.

An estimated 7,092 families in Bass have private health insurance – and every year they get hit with above-inflation premium price rises that put further strain on their household budgets.

“Our community needs action on private health insurance. Families are paying an average $1,000 more every year for private health insurance than they were when the Liberals came to power in 2013. Private health insurance should take the pressure off our public system, not drive more people straight to the LGH”.

“Prices are up and so are the profits of the big insurance companies – but quality and value are down”.

“The health insurance industry, particularly the large for profit insurers made $1.8 billion in pre-tax profits in 2016-17, their return on equity is around 25 per cent, by comparison with the banks who have a return on equity of 15 per cent”.

“On Monday night Four Corners reported on the out-of-pocket costs and hidden fees patients are having to pay for life saving care on top of their insurance policies, its just not good enough,” said Mr Hart.

While Mr Turnbull hands $6 billion to the private health insurance industry, Labor has committed to deliver relief from rising private health insurance premiums by capping the price increases at 2 per cent for two years.

This will save 7,092 families in Bass an average $340.

Labor knows every dollar counts – and that the status quo in private health insurance simply cannot continue.

With the ten-year average annual premium increases at 5.5 per cent, Labor’s move to enforce an unprecedented two percent premium cap will see savings across the board:

Single currently paying average $1975 in 2018 – will save $143
Young couple with no kids paying average $3993 in 2018 – will save $290
Single parent currently paying average $3641 in 2018 – will save $264
Family currently paying average $4731 – will save $344
Older couple paying $4771 – will save $347

Labor will also have the Productivity Commission conduct the most significant review of the private health system in 20 years to improve the value, quality and affordability of private health insurance for every Australian.

“Labor is choosing to put 7,092 families in Bass first. We’re backing Tasmanians, not private health insurance giants,” said Hart.

BACKGROUND FACTS ON PRIVATE HEALTH INSURANCE

• In 2016-17, Australians paid $4 billion more in private health insurance premiums than they got back in benefits, and the private health insurance industry made pre-tax profits of $1.8 billion.

• At the same time, premiums increased by almost 2.5 times the consumer price index – an average $200 increase for families.

• Premiums have increased by 27% since the Liberals were elected in 2013 – including the rise due in April. This includes the two highest premium increases since 2005.

• Australians are paying a lot more for their health insurance policies and getting a lot less. Ten years ago, only 8.6 per cent of health insurance policies contained exclusions, now it’s 40 per cent.

• Last year, the private health insurance industry raked in $1.8 billion in profit before tax. Most publicly companies get a return on equity of about 8 per cent. The banks average in excess of 10 per cent. Some of the biggest private for profit health insurance providers pocket a return of over 20 per cent.

Authorised by Noah Carroll ALP Canberra
ROSS HART MP FEDERAL MEMBER FOR BASS