Catherine King

Catherine King

CATHERINE KING MP
Federal Member Ballarat
Shadow Minister Infrastructure, Transport & Regional Development

T (03) 5338 8123
Email: Catherine.King.MP@aph.gov.au

Catherine King MP
Electorate Office
5 Lydiard Street North
Ballarat, VIC 3350

Bacchus Marsh
(every Friday from 10am to 3pm)
Lerderderg Library
Geoffrey Hine Room
215 Main Street
Bacchus Marsh, VIC 3340

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Thursday, 17 May 2018 / Published in MEDIA, NATIONAL MEDIA

PRIVATE HEALTH INSURANCE PROFITS UP YET AGAIN

THE HON. CATHERINE KING
SHADOW MINISTER FOR HEALTH AND MEDICARE
MEMBER FOR BALLARAT

 

Private health insurer profits are up yet again, with the latest official data revealing they’re pocketing $3.7 billion more than they’re paying out in benefits.

The latest Australian Prudential Regulation Authority figures show the insurers took in nearly $23.8 billion in revenue from premiums in the year to March 2018 but paid out only $20.1 billion in benefits.

Premium revenue rose 4 per cent while total benefits increased by only 3 per cent – increasing the insurers’ gross margin from 13.6 per cent to 14.4 per cent.

That means the 13 million Australians with private health insurance are each contributing about $280 a year to the bottom line of the insurers, rather than to consumer benefits.

Insurers’ net profit after tax was $1.38 billion for the year to March 2018 compared with $1.35 billion in the previous 12 months.

The APRA figures also show that the number of people with hospital cover as a proportion of the population continues to decline – down another 0.1 per cent in just three months to 45.5 per cent.

These latest figures show yet again why Labor’s plan to improve affordability – by capping premiums and ordering a major review of the industry – is so sorely needed.

It’s clear that under Malcolm Turnbull, private health insurance isn’t about giving Australians choice and control over their health care – it’s about giving big business another way to profit off ordinary people.

Under the Liberals, premiums have increased by 27 per cent since 2014 – costing families an average $1,000 more. Health insurance is now a leading cost-of-living concern, right up there with energy bills.

Faced with these sorts of costs, it’s now wonder Australians are ditching their cover:  nearly 12,000 people dropped their hospital insurance in the last three months of 2017.

Unlike Turnbull’s health insurance “reforms” – which were designed by the industry itself and resulted in a double-inflation price rise this year – Labor’s policies will deliver tangible benefits to ordinary Australian families.

Labor will cap premium price increases at 2 per cent for two years, delivering families an average saving of $340 and shifting the balance back in the favour of consumers rather than company executives.

We will also task the Productivity Commission with a sweeping review to identify long-term sustainable ways to bring down costs and improve quality.

THURSDAY, 17 MAY 2018

Tagged under: 2018

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© Catherine King. Authorised by Catherine King, Australian Labor Party, Canberra

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