ROXON TAKES TOUGH LINE OVER HEALTH FUND PREMIUM RISES
Sydney Morning Herald
Friday February 19, 2010
THE Health Minister, Nicola Roxon, is believed to have knocked back the initial bids of 17 health funds for premium increases, but warned customers not to expect good news.Ms Roxon said the government had asked insurers to submit their applications earlier, allowing them to be closely examined, "and some insurers have been asked to provide additional information"."We are looking very closely to make sure that only what is needed is approved," Ms Roxon told Sky News yesterday. "But I do, unfortunately, have to say to the public there's never really good news in these."Ms Roxon said her job was to make sure the pain felt by customers was limited.She said that in the past five years of the Howard government, premiums rose by an average of 6.63 per cent a year.Ms Roxon has said that under the Coalition, the health funds would have "free rein to gouge consumers for as much as they liked" - a comment contradicting the industry watchdog which says funds are "very competitive".The health funds are expected to announce premium increases of about 6 per cent by the end of this month, after gaining government approval.The Australian Health Insurance Association challenged Ms Roxon's assertion that the former health minister, Tony Abbott, merely "ticked and flicked" health fund applications for premium increases.The association's chief executive, Michael Armitage, said Ms Roxon's demand on funds to resubmit their claims was nothing new. "This happened under the previous government, but the discussions were not publicised".The regulator, the Private Health Insurance Administration Council, has described the health insurance market as "very competitive", although it said there was a restraint on wholesale premium competition.
© 2010 Sydney Morning Herald