Health insurance fears

THERE are fears cost of living pressures will force Tasmanians to ditch their private health insurance, leading to longer public hospital waiting lists.

Australian Medical Association Tasmanian president John Saul has shared concerns from health insurer St. LukesHealth chief executive Paul Lupo that the rising cost of living could see Tasmanians with private health insurance leave their health fund.

“The cost of living has gone up 5 per cent and we’re not seeing an increase in wages so for young people and families with a big mortgage that’s a double whammy,” Dr Saul (right) said.

He said private health does so much of the heavy lifting performing two-thirds of elective surgery so if people give up private health insurance that will put more pressure on the public system.

“We shudder when we see the bills.”

Mr Lupo said in the past two years, as a result of the impacts of the Covid pandemic on the public health system, about 10,000 Tasmanians took out health insurance with St. LukesHealth.

“People clearly understood that the public system was facing significant pressure as it dealt with Covid-related impacts and decided to take responsibility for their own health care,” he said.

“But as cost-of-living pressures grow and family budgets are being crunched, there is a very real risk many of those people, particularly those on low or middle incomes, will have no option but revert to the public system where elective surgery waiting lists are already extremely high.”

There were more than 9700 Tasmanians waiting for elective surgery in the public system in March, Mr Lupo said, with one in three patients waiting longer than the clinically recommended time for their procedure.

“The public hospital system is performing just one third of all elective procedures across the country yet it is perpetually at crisis point with lengthy delays for surgery.

“The queues will only get bigger if the federal government doesn’t do something to help people remain out of the public system.”

He is arguing for an increase in the private health insurance rebate for the 275,000 Tasmanians with some form of private health insurance.

“People on low to middle incomes who have taken out private health insurance need every incentive and support to remain in their health fund and not add to the burden on the public system,” Mr Lupo said.

“The federal government’s means-tested private health insurance rebate has eroded in recent years from 30 per cent to less than 25 per cent.”

St. LukesHealth wants all parties to reinstate the full 30 per cent means-tested private health insurance for low and middle income earners.

Dr Saul said he would also like to see an increase in the age limit for dependent children lifted from 25 to 30.