Coalition approves 6.2% rise in average private health insurance premium - The Guardian

The health minister, Peter Dutton, has approved average health insurance increases of 6.2% next year, an increase from the 5.6% approved by the previous Labor government this year.

Premium changes have been approved for all 34 health insurers for next year, which the minister said would help the industry absorb the cost of a higher than expected level of claims.

“Each application has been closely scrutinised to ensure the increases sought are fully justified,” the minister said in a statement.

Dutton blamed part of the increase on the Labor government.

“There is no doubt this increase could have been lower had it not been for the pressures placed on the sector by Labor,” he said.

But shadow health minister Catherine King said the announcement, made just two days before Christmas, was a significant rise in premiums.

“The decision to approve such an increase is consistent with the disregard Mr Dutton has shown for health services Australians rely on," she said in a statement.

"It is proof once again that this is not the government that Mr Abbott promised the Australian people they would be.”

A spokesman for the Consumer Health Forum (CHF) of Australia said the latest rise in premiums was an “unhappy Christmas present” for many Australians struggling to meet the cost of health insurance, and that the present government and past governments had failed to explore ways to rein in costs.

“This latest rise is just the last in a decade of increases – private health insurance premiums have risen by more than the annual rate of inflation for more than 10 years,” he said.

“CHF is concerned that this new rise, to take effect in April, will exacerbate the two-tier health system emerging in Australia which means those on low incomes and many with chronic illness aren’t able to access the care they need when they need it.”

The price approvals range from 3.14% for Health Partners premiums, to 7.99% for NIB policies.

NIB’s chief executive, Mark Fitzgibbon, said the increasing cost of health care services made the rise necessary.

“In financial year 2013, NIB paid out more than $1bn in benefits to customers,” he said.

“That’s an increase of more than 10% on the previous year.”

Health Partners chief executive, Byron Gregory, said its rise was well below the industry standard.

“Unlike other insurers, Health Partners does not pay dividends to its shareholders, which allows us to keep rises to an absolute minimum, while still allowing us to directly invest in improved services for members,” Gregory said.