Veto for health insurers

HEALTH insurance providers are getting knocked back on their proposed premium hikes for 2018 because they are coming in too high and will burden Australian families.

Cost of living pressures continue to plague households and private health cover has been one of the biggest expenses to rise each year.

Industry sources say the federal Minister for Health Greg Hunt has been forced to reject proposed increases by insurers.

Health insurers are required to make their submissions to the government many months before they are publicly announced on April 1 each year.

In 2017, the average premiums rose by 4.84 per cent which was the lowest rise in a decade, but it’s understood insurers are being urged to stick to rises that fall below 4 per cent after recent health reforms enabled insurers to reap huge savings and pass these on to members.

While he would not disclose which providers had been knocked back and by how much, Mr Hunt said he was “unapologetic” for pushing the lowest possible premiums for health insurance members.

“We are working hard to ensure private health insurance is value for money,’’ he said.

“The wide-ranging package of reforms we’ve announced will make private health insurance simpler and more affordable for Australians.

“One of the ways we’re doing this is by reducing costs for health insurers – which would otherwise be passed on through higher premiums.”