PRIVATE HEALTH INSURANCE MEANS TEST TO COST 48,000 INDI LOCALS
19-May-2011
Sophie Mirabella MP, Federal Member for Indi has slammed one of Labor’s budget measures as ill conceived and a threat to our local health system.
Labor plans to means test the Private Health Insurance Rebate as part of its 2011 budget, which would significantly increase Private Health Insurance premiums and further increase pressure on the local public health system.
Mrs Mirabella said the move would add further cost pressures to the more than 48,000 people that are covered by Private Health Insurance in the Indi electorate alone.
“Each one of those policy holders, not just those in higher income brackets, will be hurt under Labor’s plan to means test private health insurance rebates. Means testing the rebate means that premiums will rise directly by up to 40% for some.
“What Labor doesn’t seem to understand is that if the incentive to take up Private Health Insurance is removed, people will dump their insurance policies, prices will rise even further and more pressure will be put on our already stretched public health system,” Mrs Mirabella continued.
A recent Deloitte report into the impact of Labor’s means test policy has concluded that 1.6 million customers would drop their private hospital cover and a further 4.3 million customers would downgrade their insurance policies.
The report also found that the policy would cost the public hospital system a further $3.8 billion over the next five years as private health customers moved to the public system.
“This is a lose-lose policy. Insurance premiums will rise and public hospital queues will grow. When Labor was elected, they promised in writing not to means test the Private Health Insurance Rebate, but once again, they have bowed to pressure from The Greens and it’s locals that will have to pay the price,” Mrs Mirabella concluded.