Health funds price hike

Premiums rise at triple the inflation rate

FAMILIES will pay up to $282 a year more for private health insurance after the Federal Government approved a premium rise more than three times the inflation rate.

For singles the rise will mean they pay up to an extra $141 a year in premiums.

The premium rise is the second biggest in a decade and comes as a new policy begins to erode the value of the 30 per cent health insurance rebate provided by the Government.

Consumer groups labelled the rise a “slap in the face” for health fund members already facing high out-of-pocket costs.

It comes on the heels of a 6.2 per cent hike in premiums last year, the biggest rise in nine years.

Three of the nation’s biggest health funds, Medibank, HCF and NIB, posted above average premium rises of over 6.5 per cent. The nation’s second largest fund BUPA announced an average premium rise of 5.5 per cent.

Doctors are the biggest winners: their Doctors Health Fund posted a premium rise of just 3.98 per cent.

Health Minister Sussan Ley said the reason for the premium rise was the $1 billion growth in rebates paid out by health funds in the 12 months to December 4.

The premium rise takes effect on April 1 and Ms Ley encouraged people unhappy with their fund to use the Government’s independent comparison website privatehealth. com.au.

Consumer’s health forum chief Adam Stanevicius said: “It’s a cop-out on behalf of Australian health consumers who expect the Government to provide serious scrutiny to things that affect their hip pocket and not treat it as a tick and flick.”

Consumer group Choice said health fund premiums had risen by more than 35 per cent since 2010 and would further hit members’ hip pockets.

“It’s clearly worrying prices are increasing so much and people are also facing out of pocket expenses when they use their insurance,” Choice spokesman Tom Godfrey said.

He urged those who could afford to do so to pay their health fund premiums for a year in advance before April 1.