Private Health insurance increases.. Grrr

[Hally]

Whilst health insurance is a grudge purchase, some things to consider around this:

- Medical inflation is currently running at between 8 - 10%. Much different to the general inflation rate
- As an insurance sector, private health insurers have the lowest margins for insurance. Typically health insuers run on margins of 3 - 7%. Guys in the business world would realise that this is quite low.
- Majority of health funds are mom-profit, owned by mutual organisations
- Most funds pay85 - 90 cents if each dollar paid in premium back on claims
- All health fund increases each year are actuary assessed and approved by the federal government. This is a stringent exercise to make sure health funds don't go broke
- Your increases this year may also be increase because rebate levels are going down
- Without private health insurance, the public health system would collapse. It is that simple
- In terms of self insurance, absolutely agree for things like dental, optical, physio etc. But for hospital you are dreaming! Just not worth it.


Cheers,

Andrew