Health fund premiums soar
Many WA families will be slugged an extra $200 a year for their private health insurance after the Federal Government approved premium rises averaging three times the inflation rate.
Among the worst hit by the April 1 rise are the one-fifth of WA policy holders with recently privatised Medibank, who face a 6.6 per cent increase compared with the average 6.18 per cent.
The 60 per cent with HBF face a rise of just under 6 per cent, while the HIF increase is 4.49 per cent.
It is the second rise of about 6.2 per cent in as many years and will put more pressure on families struggling to pay premiums.
In WA, 54 per cent of the population is insured. The national average is 47 per cent.
While encouraging consumers to shop around for the best deal, Health Minister Sussan Ley said the total benefits paid to private health insurance members grew by over $1 billion - or 7.4 per cent - to about $17.3 billion in the 12 months to last December.
"To achieve that we must ensure any premium increases strike the right balance between keeping them affordable for consumers without putting the financial viability of the sector at risk," she said.
But Australian Medical Association WA president Michael Gannon said every time there was a rise in premiums it put added financial pressure on members, many of whom were not from big-income households.
"There is no doubt medical technology and the quality of the disposables and implantables is having a significant effect on the cost of delivering private health, so premium rises are almost inevitable," he said.
HBF managing director Rob Bransby said HBF tried to keep its increase to the minimum.
"The back story for HBF is that this year the average member will receive 6.8 per cent more in benefits for hospital services and 7.6 per cent more for general services than last year, which is significantly more than our premium increase," he said.
National Seniors chief executive Michael O'Neill said the increases would hurt retirees.
"Insurance, gap payments and specialist fees are driving up health costs for the average punter, and pensioners and self-funded retirees on low, fixed incomes have little capacity to adjust to big increases," he said.
The Consumers Health Forum said the increase was a fresh blow to health consumers.
