• Home
  • Contact Us!
  • Privacy Policy

Radio Metta

  • Home
  • Business
  • Education
  • Health
  • Home Deco
  • News
  • Real Estate
  • Technology
  • Contact Us!
  • Privacy Policy
Home» Health»Health insurance regulators raise alarm over rising costs

Health insurance regulators raise alarm over rising costs

Loknath Das 07 Feb 2018 Health Comments Off on Health insurance regulators raise alarm over rising costs 327 Views

“The underlying cost of Australia’s health system is the ailment; rising insurance premiums are just a symptom,” Mr Summerhayes said.

“The underlying cost of Australia’s health system is the ailment; rising insurance premiums are just a symptom,” Mr Summerhayes said.

Health insurance regulators have sounded the alarm over rising medical costs and declared the current reform process must continue, only days after Labor leader Bill Shorten accused insurers of “a con” and vowed to cap premium increases at roughly half the current rate.

In a rare commentary on the state of the industry, Australian Prudential Regulation Authority official Geoff Summerhayes warned insurance companies were “under duress” as costs forced up premiums, leading members to drop their cover.

“The underlying cost of Australia’s health system is the ailment; rising insurance premiums are just a symptom,” Mr Summerhayes said. “Specifically, the ­fundamental forces pushing premiums up are higher claims costs experienced by insurers, through such factors as a greater uptake of medical services among policyholders and the rising cost of treatments and procedures.

“It is very much in the community’s interest that the current reform process continues, and private health insurers need to be an influential voice in that.”

His comments were in stark contrast to those of Mr Shorten, who last week said he was “fed up with the private health insurance industry treating Australians like mugs, gouging people on the basis of a con”. Rather than support the Coalition’s reform process or commit to alternative measures, Mr Shorten has promised a Productivity Commission inquiry and the unprecedented capping of premium increases at 2 per cent for two years while Labor considers its response.

Mr Shorten said “despite having a stack of cash in the bank and profits in the billions, the private insurers aggressively jack up their premiums each year”.

While Mr Summerhayes acknowledged the industry’s “healthy level of profitability,” he reiterated their capital levels were neither too high nor the cause of rising premiums.

APRA instead has proposed a tightening of regulatory requirements aimed at ensuring smaller insurers, in particular, can weather the storm or seek the relative safety of a merger.

“APRA has no current prudential concerns about the state of Australia’s private health insurance industry,” Mr Summerhayes said. “That was true in 2015 and it’s true now in 2018, but I’m not sure how much longer APRA will hold that view.”

In October, Health Minister Greg Hunt announced a package of insurance reforms, guided by the Private Health Ministerial Advisory Committee, and scheduled further work through to early 2020. He last month ­approved long-time low premium increases, due largely to man­dated cuts to prostheses prices.

The government also has a taskforce examining the Medicare schedule, has taken a ­tougher approach on compliance and will negotiate new public hospital agreements this year.

[“Source-theaustralian”]

alarm Costs Health Insurance over raise regulators rising 2018-02-07
Tags alarm Costs Health Insurance over raise regulators rising
Facebook Twitter Stumble linkedin Pinterest More

Authors

Posted by : Loknath Das
Previous Article :

NHS criticism on social media ‘risks undermining health service’

Next Article :

US Plans To Privatise International Space Station, Reveals Document

Related Articles

Quitting vaping: the health reasons why you should give up vaping

Quitting vaping: the health reasons why you should give up vaping

admin 30 Jul 2025
Acidity Problems?  21 Home Remedies That Can Be Beneficial

Acidity Problems? 21 Home Remedies That Can Be Beneficial

admin 06 Jun 2025
MyChart: 8 Things You May Not Know You Can Do

MyChart: 8 Things You May Not Know You Can Do

admin 12 Mar 2025

Latest Post

Gaming Your Way to Sharper AI Prompts
Technology

Gaming Your Way to Sharper AI Prompts

admin 07 Aug 2025
15 Elegant Living Room Hanging Lights
Home Deco

15 Elegant Living Room Hanging Lights

admin 04 Aug 2025
115 Ideas for Real Estate Blogs: How to Make the Most of Your Online Presence and Get Leads
Real Estate

115 Ideas for Real Estate Blogs: How to Make the Most of Your Online Presence and Get Leads

admin 02 Aug 2025
Quitting vaping: the health reasons why you should give up vaping
Health

Quitting vaping: the health reasons why you should give up vaping

admin 30 Jul 2025
5 tips for getting started with Flow
Uncategorized

5 tips for getting started with Flow

admin 26 Jun 2025
Acidity Problems?  21 Home Remedies That Can Be Beneficial
Health

Acidity Problems? 21 Home Remedies That Can Be Beneficial

admin 06 Jun 2025
Cross-skilling: How to maintain government efficiency amidst change
Technology

Cross-skilling: How to maintain government efficiency amidst change

admin 21 May 2025
August 2025
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
  • Home
  • Contact Us!
  • Privacy Policy
Copyright 2016, All Rights Reserved
Magazine Blog News WordPress Theme