MORRISON’S PRIVATE HEALTH HIKE EVEN WORSE THAN FEARED

CATHERINE KING MP.
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5 years ago
MORRISON’S PRIVATE HEALTH HIKE EVEN WORSE THAN FEARED
CATHERINE KING MP
Millions of Australians will face another above-inflation private health insurance hike next year because Scott Morrison has failed to stand up to his insurer mates and get prices under control.
 
Premiums have already risen more than $1,000 a year under the Liberals – up 27 per cent since 2014.

Today’s confirmation of a 3.25 per cent increase in 2019 brings the total under the Liberals to over 30 per cent and will cost families more than an extra $100 a year.

It is also further evidence of a Government in chaos, with the Liberals telling journalists just 10 days ago that the increase would be less than 3 per cent.

If Scott Morrison expects the Australian people to thank him for another above-inflation price increase it shows just how out-of-touch he really is.

The Liberals’ so-called private health insurance "reforms" - designed hand-in-hand with the industry while Mr Morrison was Treasurer - have failed to get prices under control.

This latest Liberal health hike will be a major hit to the family budget and force more people to abandon their cover.

Already, Australians are downgrading or ditching their private health cover in record numbers in response to relentless price rises, soaring out-of-pocket costs and growing exclusions.

A recent ACCC report found that as of June 2018, 45.1 per cent of the Australian population held hospital-only or combined health insurance cover – the lowest level since 2009.

Wage growth is low and family budgets are already under strain given the Abbott-Turnbull-Morrison Government’s failure to rein in living costs, from health insurance to electricity. The Liberals promised to make insurance more affordable – but all they’ve done is make it more profitable for the big insurers.

Today’s news shows why Labor’s policies are so sorely needed.

Labor will cap premium price increases at 2 per cent for two years, delivering families an average saving of $340. We will also task the Productivity Commission with a sweeping review to identify long-term sustainable ways to bring down costs and improve quality.

Labor is currently inviting consumers, experts and the private health sector to have their say on how to improve the value, affordability and quality of private health insurance.

Labor has released an issues paper and is inviting submissions to inform the terms of reference and structure of the Productivity Commission inquiry.

Only with these policies can we shift the balance back in favour of consumers and get this industry back on track.
 
ADDITIONAL INFORMATION:
 
Based on Canstar averages for combined hospital/general cover, an average* 3.25% increase will mean an extra:

$64 for young singles
$122 for couples/families with obstetrics
$159 for older couples
* These are only average increases, with costs set to rise by much more for many people
 
Health and Aged Care