PRIVATE HEALTH INSURERS POCKET $3.2 BILLION MORE THAN THEY PAY OUT
13 million Australians with private health insurance are paying $3.2 billion more in premiums than they are getting back in benefits from insurers – an average of $239 per person.
Official data from APRA shows around 14 per cent of premiums paid go towards the bottom line of insurers – rather than to consumer benefits.
Private health insurance is meant to give people control and choice in their care, but under Turnbull, it’s just another way for big business to make big profits.
This data is just more evidence of the need to act to make private health insurance fairer for Australians and shift the balance back to consumers
Australian families are paying around $1000 more every year for private health insurance under the Liberals, and the proportion of policies with exclusions has soared to more than 40 per cent. As a result, Australians are paying more than ever for private health insurance, and still being stung when they try to use their cover.
But instead of standing up for the budgets of families, Turnbull is standing up for his private health insurance mates.
While Turnbull cares more about protecting the profits of insurers than he does about protecting consumers, Australians will always lose out.
In contrast, Labor has a plan to shift the balance back to Australians – by capping private health premiums at 2 per cent for two years and tasking the Productivity Commission with the biggest review of private health insurance in twenty years.
Labor’s plan will deliver cost-of-living relief to 13 million Australians – an average saving of $340 to the family budget.
With Australians paying $3.2 billion in private health premiums than they are getting in benefits it couldn’t be clearer that action needs to be taken – Turnbull needs to stop rubber stamping the wishes of the bigger insurers and adopt Labor’s plan.
| Premium revenue | Benefits | Difference | |
| Australia | 23,065,042,001 | 19,834,441,001 | 3,230,601,000 |
| NSW | 7,416,332,001 | 6,409,046,000 | 1,007,286,001 |
| VIC | 5,548,385,001 | 4,694,231,000 | 854,154,000 |
| QLD | 4,590,988,000 | 3,975,255,000 | 615,733,000 |
| SA | 1,749,293,000 | 1,500,393,000 | 248,900,000 |
| WA | 2,672,165,001 | 2,376,773,001 | 295,392,000 |
| TAS | 520,717,001 | 439,629,000 | 81,088,001 |
| ACT | 430,744,000 | 333,777,000 | 96,967,000 |
| NT | 136,415,000 | 105,335,000 | 31,080,000 |
Source – Operations of private health insurers annual report, APRA, http://www.apra.gov.au/PHI/Publications/Pages/Operations-of-Private-Health-Insurers-Annual-Report.aspx