Geelong Advertiser

Private health to rise 4pc

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FAMILIES will have to find an extra $140 a year when private health insurance premiums rise by close to 4 per cent from April.

Federal Health Minister Greg Hunt has ticked off on an average 3.95 per cent increase but insists it’s the lowest government approved hike since 2001. Last year’s average premium rise was 4.84 per cent.

“It’s the lowest change in 17 years but there is more work that we’ll be driving on to push even further,” Mr Hunt said.

But Labor says the increase is two times the annual rate of inflation and represents a big win for insurance companies.

“We’ve got a federal Liberal government who, when the private health insurance companies come into the room, they get up and say, ‘how high do you want us to jump?’” Opposition Leader Bill Shorten said. “I mean, where does Mr Turnbull think that families find another 4 per cent for their health insurance premiums?”

On the Government’s measure, consumers are looking at paying about $73 a year extra for singles and $140 for families. Labor believes it will be closer to $180.

The comparativ­ely lower annual increase follows government reforms to the price that health funds pay for hip and knee replacemen­ts and other prostheses, as well as changes to simplify policies into gold, silver, bronze and basic.

From April 1, Medibank and its subsidiary arm will increase premiums by an average of 3.88 per cent. Chief executive Craig Drummond said private health costs had increased by about 5 per cent over the past year.

“These cost increases are largely being driven by medical inflation and an increase in the frequency of people seeking treatment,” he said.

BUPA is looking at a 3.99 per cent rise, with managing director Dwayne Crombie arguing broader health reforms are needed to bring down the cost of health care.

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