ID :
184375
Wed, 05/25/2011 - 16:22
Auther :
Shortlink :
http://m.oananews.org//node/184375
The shortlink copeid
Means test to 'kill' Medibank: Dutton
SYDNEY (AAP)- The federal opposition has jumped on Medibank Private's estimate that 37,000 members could drop their cover if the government succeeds in its plan to means test the health insurance rebate.
Medibank chief financial officer Michael Sammells on Wednesday said that one per cent of its 3.7 million members could let their policy lapse if the 30 per cent rebate was cut.
Some 92,500 could also downgrade their policy.
Mr Sammells emphasised during a Senate estimates hearing the figures were only an "educated guess" and were "fraught with danger".
But that didn't stop opposition health spokesman Peter Dutton using the numbers to claim Labor was intent on destroying private health.
"The government's own health fund, Medibank Private, says it will lose more members than Health Minister Nicola Roxon is predicting for the whole industry," he said in a statement to AAP.
"Labor has cooked the books. Their policy is going to kill private health insurance and just drive people into already overstretched public hospitals."
The federal government wants to means test and reduce the private health insurance rebate for individuals earning more than $80,000 and families earning more than $160,000.
At the same time, it plans to increase a surcharge penalty paid by the wealthiest Australians if they don't take out private cover.
Labor argues the measures, in combination, will result in around 25,000 people dropping their hospital cover.
That's just 0.3 per cent of all insured Australians.
On Wednesday, Ms Roxon was standing by the government's calculations.
"The government's modelling has consistently shown that our proposed changes to private health insurance rebates will not have significant negative effect upon private health insurance coverage, premiums, or demand on public hospitals," she said in a statement to AAP.
"Our modelling includes key factors impacting decisions to take out private health insurance including the rebate and the Medicare levy surcharge."
Mr Sammells on Wednesday suggested that Medibank's internal modelling didn't factor in the impact of the proposed increase in the surcharge.
He also noted the numbers were rubbery because the country's largest private health insurer didn't know the income level of its members and, therefore, whether they'd be effected by Labor's legislation.
The federal government has twice had its changes knocked back by the Senate.
But now the minority government is fighting an uphill battle to get them pass the lower house.
It's looking to win over key rural crossbench MPs who've previously voted "no" and newly elected Tasmanian independent Andrew Wilkie.
This week, he said his support wasn't assured.
"I am concerned this means test will result in people forsaking private health insurance for the already stretched public system," Mr Wilkie told parliament on Tuesday.
"And I am worried that health insurance premiums will rise significantly forcing even more people into public hospitals and onto waiting lists."
Medibank chief financial officer Michael Sammells on Wednesday said that one per cent of its 3.7 million members could let their policy lapse if the 30 per cent rebate was cut.
Some 92,500 could also downgrade their policy.
Mr Sammells emphasised during a Senate estimates hearing the figures were only an "educated guess" and were "fraught with danger".
But that didn't stop opposition health spokesman Peter Dutton using the numbers to claim Labor was intent on destroying private health.
"The government's own health fund, Medibank Private, says it will lose more members than Health Minister Nicola Roxon is predicting for the whole industry," he said in a statement to AAP.
"Labor has cooked the books. Their policy is going to kill private health insurance and just drive people into already overstretched public hospitals."
The federal government wants to means test and reduce the private health insurance rebate for individuals earning more than $80,000 and families earning more than $160,000.
At the same time, it plans to increase a surcharge penalty paid by the wealthiest Australians if they don't take out private cover.
Labor argues the measures, in combination, will result in around 25,000 people dropping their hospital cover.
That's just 0.3 per cent of all insured Australians.
On Wednesday, Ms Roxon was standing by the government's calculations.
"The government's modelling has consistently shown that our proposed changes to private health insurance rebates will not have significant negative effect upon private health insurance coverage, premiums, or demand on public hospitals," she said in a statement to AAP.
"Our modelling includes key factors impacting decisions to take out private health insurance including the rebate and the Medicare levy surcharge."
Mr Sammells on Wednesday suggested that Medibank's internal modelling didn't factor in the impact of the proposed increase in the surcharge.
He also noted the numbers were rubbery because the country's largest private health insurer didn't know the income level of its members and, therefore, whether they'd be effected by Labor's legislation.
The federal government has twice had its changes knocked back by the Senate.
But now the minority government is fighting an uphill battle to get them pass the lower house.
It's looking to win over key rural crossbench MPs who've previously voted "no" and newly elected Tasmanian independent Andrew Wilkie.
This week, he said his support wasn't assured.
"I am concerned this means test will result in people forsaking private health insurance for the already stretched public system," Mr Wilkie told parliament on Tuesday.
"And I am worried that health insurance premiums will rise significantly forcing even more people into public hospitals and onto waiting lists."
