Health funds push for premium increases
9 Jan 2002
The cost of your private health insurance could rise this year with three of the largest health funds seeking approval to increase premiums.
With the huge influx of new members due to Lifetime Health Cover in 2000, the funds have been paying out a much higher volume of claims over the latter part of last year.
MBF, AXA Health and HBF had all applied to the Federal Health Department to increase premiums in March. Health funds can seek approval from the Federal Government to increase premiums only once per year. There has not been an increase in health premiums for at least two years.
The Australian Health Insurance Association chief executive Russell Schneider said the effects of inflation as well as the huge increase in claims justifies the need for increases in premiums. A $680 million increase in hospital claims was paid out in the year to September 2001 compared to the previous year.
The Sydney Morning Herald, p3, 9/1/02.
by Karen Hawkins
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