The Federal Government Minister for Health Ms Sussan Ley has major concerns with the average increases of 5-6% in premiums following a survey of almost 40,000 participants.
Value for money and affordability was a clear message that rang loud and clear from the public, to the Private Health Insurance funds.
The minister announced “It’s become clear to me through my consultations, the current system for analysing and approving premium increases doesn’t allow the Government to apply enough rigors to an insurer’s financial position, including what returns they make each year,”
The Government will look to examine the full financial position of the Private health funds to validate their claim to increase premiums.
Ms Ley believes recent research of the Australian private health industry, found funds had the capacity to pass on premium increases as low as 2.5% over the next three years.
The minister has instigated a review of the publicly available financial reports by her department in preparation for the new year premium increases review.
The minister said “I’m putting insurers on notice that I will be closely scrutinising their applications for the next round of premium increases based on their full financial position,” Ms Ley said.
“I won’t be afraid to ask for more detailed information about what insurers are really earning, to ensure we can deliver the fairest premium increases possible under the current system.”