RISING PREMIUMS TO PUT MORE PRESSURE ON PUBLIC HOSPITALS

Rising private health insurance premiums which took effect this month will put further pressure on Queensland’s public hospitals, Health Minister Stephen Robertson said today.

Mr Robertson said the Federal Government had dumped more of the burden on public hospitals by approving an average 4.5 percent hike for private health insurance holders.

“The latest Federal Government slug means Queensland families with private health insurance will pay around $100 more each year with no real benefit,” Mr Robertson said.

“This could force more Queenslanders to seek treatment in public hospitals, rather than the private system.

“Tony Abbott sees fit to approve yet another insurance hike but only last month at the Health Minister’s meeting, he moved to stall all negotiations for a new Australian Health Care Agreement (AHCA) until after the federal election.

“He rates lining the pockets of private health insurers and the federal election more important than a new funding deal for our public hospitals.”

Mr Robertson said in the past eight years, the Federal Government had increased private health insurance average premiums by an average 47 percent.

“During the same period, Federal funding to Queensland public hospitals has only increased by 31.3 percent while State funding has skyrocketed,” he said.

“The AHCA is a 50/50 funding agreement between the Commonwealth and the States, yet over the life of the current agreement, Queensland will have contributed 65 percent of funding and the Commonwealth only 35 percent.

“In dollar terms, the Commonwealth is $2.6 billion behind Queensland.

“This is happening while the Private Health Insurance Administration Council reports the industry’s best operating outcome for many years with a surplus of $984 million in 2005-06.

“The largest fund, Medibank Private, recorded strong growth in operating profit for the fourth consecutive year, up 53.1 percent from 2004-05 to $200.1 million in 2005-06.

“Meanwhile, the percentage of Queensland’s population with health insurance is already below the national average at 40.7 percent. This latest hike could turn more people off having private health insurance.

“What’s worse is that the out-of-pocket expenses people pay on top of any benefit is getting higher.

“In addition, a higher proportion of Queenslanders with private health insurance are electing up front excess to keep their premiums as low as possible.

“Consequently, there is a huge disincentive for Queenslanders to actually use their private insurance when they require treatment.

“In fact, nearly half the patients who are admitted to a Queensland public hospital and have private health insurance don’t actually use it – this is around 38,000 patients every single year.

“They would prefer to be treated for free in the public system rather than pay higher amounts to be treated privately.

“The Australian health system should be formed on the basis that there is an affordable private system which complements the role of the public system.

“Unfortunately, private treatment is becoming less affordable to the detriment of patients and our hardworking public doctors and nurses.”

Private Health Insurance Premium Rises since 1999

Year           1999 2000 2001 2002 2003 2004 2005 2006 2007
% increase 4.9  1.8     0     6.9    7.4  7.58   8     5.7   4.5

Total cumulative increase since 1999 46.78%

10 April,  2007
MEDIA: Joshua Cooney 3234 1185 or 0409 069 056