PRICE HIKES IN HEALTH INSURANCE
The Member for Berowra, Philip Ruddock MP said thousands of local families are facing a double whammy of price hikes for private health insurance over the next two years thanks to the Federal Government’s short-sighted policies.
With health insurers expected to seek the biggest premium increases in years in the wake of the world financial crisis and rapidly growing health costs (The Australian Financial Review today), the Federal Opposition warns of the impact of Labor’s changes to the Medicare levy surcharge would follow soon after.
“Health funds have already reported an increase in the numbers of members dropping health cover and they expect it will worsen toward the end of the financial year,” Mr Ruddock said.
“It will mean higher premium costs for those with private health cover and further pressure on the public hospital system.
“The Rudd Government’s move to raise the income threshold on which the levy kicks-in could see up to half a million Australians opt out of private health cover,” Philip Ruddock said.
The changes were expected to discourage younger people in particular from taking out private insurance.
“Driving people away from private health insurance and into an already overstretched public hospital system means the Rudd Government is forcing up premiums and adding to hospital waiting lists and that under the previous Coalition Government private health insurance coverage had increased from around 33 per cent of the population to almost 45 per cent, gains that would now be lost under Labor,” Mr Ruddock said.