Health Fund Membership Continues To Grow - Treasury Modelling Discredited

Health Fund Membership Continues to Grow Treasury Modelling Discredited

Data released by the Private Health Insurance Administration Council this morning shows that private health insurance coverage grew by more than 43,000 individuals over the second quarter of 2009. This means health insurance membership has increased by more than 150,000 people since the Medicare Levy Surcharge (MLS) changes were implemented last year. This is despite modelling by Treasury that said private health insurance membership would decrease by 492,000 by 30 June 2009.

"The latest figures conclusively confirm that the Treasury modelling is totally wrong. Yet they are relying on this flawed methodology to assess the impact of the proposed changes to the private health insurance rebates," said Michael Roff, CEO of the Australian Private Hospitals Association.

"Each quarter the number of Australians covered by private health insurance increases as the general public gets more and more frustrated with the public health system. The Government should be encouraging those who take responsibility for their own health care costs," stated Mr Roff.

"Australians who purchase private health insurance already pay twice for healthcare: once through their taxes and again through their premiums. They are relieving the pressure on the public system and the current system of private health insurance rebates encourages them to do so."

"The MLS changes were simple compared to the complexity of the rebate proposals, which will introduce 10 different levels of entitlement or surcharge depending on income level and age. With the Medicare Levy Surcharge changes, they got one figure wrong. With the proposed private health insurance rebate changes those errors could potentially be 10 times as big."

Ends.

For more information or to interview Michael Roff, contact: Lisa Ramshaw, APHA Public Affairs Manager on 0413 971 999

SOURCE: Australian Private Hospitals Association