Medibank Private seeks to increase premiums
4 Feb 2002
Australia’s largest health fund is asking the Federal Government to approve a 13 per cent increase to its health cover premiums.
Approval of a 13 per cent increase in premiums would revive fears of the big premium increases we saw in the 1990’s, which led to large numbers of members dropping their cover. However, there has been no increase in health premiums for at least two years.
Due to the huge influx of new members over the past 18 months now having completed their mandatory 12 month waiting period for pre-existing conditions, the health funds are starting to see significant increases in claim payouts. Medibank Private’s Managing Director Mr Mark Burrowes said member contributions were not matching spiraling claims.
A 13 per cent increase in premiums would result in an increase of about $2 per week for the average membership. Other funds including MBF, HCF and AXA are likely to seek premium increases of between 5 and 8 per cent.
The Federal Health Department will make its decision next month on whether to approve premium increases.
The Sydney Morning Herald, p1, 4/2/02.
by Karen Hawkins
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