Seniors slam health insurance hike
National Seniors Australia (NSA) has slammed the 5.7% health insurance premium increase approved by Health Minister, Nicola Roxon.
“This rise comes only a day after the government’s carbon tax announcement sparked fears amongst retirees of a significant jump in everyday living costs,” NSA chief executive, Michael O’Neill, said.
“Pensioners and self funded retirees are already grappling with rising food, energy and health costs. Today’s announcement is just another assault on their way of life.
“Policy-makers must understand that retirees, many of whom are still recovering from the GFC, have very little capacity to adjust to these increases.”
Minister Roxon defended the hike, saying “During the premium process I asked 17 of the 35 health funds to resubmit their applications, which helped reduce the premium increase for 7.9 million Australians.
“Under Labor an additional 725,000 people have taken out private hospital insurance with more than 10.1 million Australians now covered, which is the highest number since 1982,” she said.
“One health fund, Australian Unity, has declined my request to reduce their premiums. I am not satisfied that Australian Unity has done all they can to ensure their customers get a reasonable deal so I’ll be asking them to go back and reconsider their position.”
The benefits paid to private health insurance members increased by 7.7% to $12.2 billion in 2009-10, while the consumer price index for hospital and medical services in 2010 was 6%.
Benefits paid are forecast to further increase by 9.45% for the 12 months ending 31 March 2012, which is significantly more than the average premium increase.
The increase starts 1 April. Consumers are also able to compare the coverage and costs of individual insurance products at www.privatehealth.gov.au, with the new premium information available on this website from 1 April 2011.
