PRESS RELEASE: Health Funds on notice: Share savings, or premium increases will be knocked back

The Federal Government will return-to-sender the premium increases of health funds for next year, unless they pass-on an entire $86 million of annual savings to consumers.

But premiums will still rise next year, even if the full amount is shared with policyholders. Federal Health Minister Sussan Ley told the FiftyUp Club Radio Show last night:

“I, as minister receive the requests from the health funds from November about what those [price] increases will be. Last year, I said ‘not good enough’, I sent them all back and they re-submitted, I won’t hesitate to do that again this year.”

“I want to see every cent of this 86 million dollars that I know we have taken out of their costs across the board reflected in reduced premiums.”

Yesterday, Ms Ley announced long-awaited cuts of $86 million a year to the price of medical implants such as artificial knees, hips and pacemakers.

She said health funds had given her an undertaking to share any saving on the cost of these prostheses with customers, in the form of lower premium increases.

Premiums have doubled in 13 years, with an average increase of almost $300 in 2016 for couples and families.

Back in July, Melbourne University's Household, Income and Labour Dynamics in Australia project surveyed about 17,000 people about their lives each year and confirmed massive premium increases are hitting older people hardest of all.

The FiftyUp Club's Christopher Zinn said: "It's disappointing to hear that premiums will rise yet again, but very encouraging to see the Federal Government finally delivering on a reform that could limit premium increases.

"Good news is rare in private health insurance pricing, so over-50s who are the backbone of this industry will be glad to hear it."

The podcast of the Minister's interview is available here: http://bit.ly/2evbEjt

 FiftyUp Club spokesman Christopher Zinn is available for comment. Case studies are also available.

MEDIA ENQUIRIES: David Liston, FiftyUp Club Campaigner

EMAIL: David@onebigswitch.com.au PHONE: 0479 146 830