Private Healthcare Australia chief executive Rachel David said the proposed premium increase reflects costs they cannot control such as hospitals requesting more funding,increased demand for insurance and the cost of medical and surgical tools.
“The health funds don’t want to put up premiums by $1,” she said. “They totally get that some people are making major sacrifices to afford health insurance and a large number of people perceive they don’t have a choice because of long hospital waiting lists.
“The funds will do everything in their negotiations with government to keep that higher rate as low as possible.”
The negotiations are expected to continue into the new year as Butler said he was not inclined to approve the insurers’ proposed premium increases during a cost-of-living crisis when nearly 15 million Australians have private health insurance.
“I’ve written to every private health insurer,directing them to put forward a more reasonable figure that considers their years of record profits and the declining proportion of premiums they return to customers,” Butler said.
This year insurers have had thehighest membership rates in more than five years because of Australians’ poor perception of the public health system as data from the Australian Prudential Regulation Authority revealed more than 45 per cent of Australians had hospital insurance in the September quarter and 55 per cent had general cover for extras such as dental,optical and physiotherapy.