Hundreds of thousands could face 50% price rise as a result of the means-test17 August 2012
About 200,000 Australians prepaid their private health insurance in the last financial year to avoid having their 30% Rebate means-tested.
Private Healthcare Australia CEO, Dr Michael Armitage, said those privately insured Australians who avoided the means-test for the year 2012-2013 could face price rises of up to 50 per cent for the next financial year.
“If you’ve pre paid your policy for the current financial year and you’re in the top income tiers targeted by the Government’s means-test (singles earning more than $130,000 and families earning more than $260,000) you will lose the entire Rebate for the year 2013-2014 and potentially have to pay an increased premium based on annual premium adjustments,” said Dr Armitage.
“The Government’s means-test will impact all Australians who are privately insured and it will also affect those people who rely on the public hospital system.
“As price increases resulting from means-test start to flow through to privately insured Australians and they drop or downgrade their private health cover, there will be increased pressure on public hospital waiting lists.
“No matter how you look at it, means-testing the Rebate is bad public policy and bad for Australia’s health system.”