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Grattan Institute confirms PHI crisis and calls for reform now



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CHRIS BOWEN MP

SHADOW MINISTER FOR HEALTH

MEMBER FOR MCMAHON

GRATTAN INSTITUTE CONFIRMS PHI CRISIS AND CALLS FOR REFORM

NOW

Today’s ‘Saving private health 1: reining in hospital costs and specialist bills’ report

by the Grattan Institute has confirmed the crisis in private health insurance will

continue unless policies are changed and savings are made.

This report has highlighted the fact that under this Government private health

insurance is being abandoned at an alarming rate, leading to increasingly

unaffordable costs.

This is while out of pocket health costs and wait times for health care are at record

highs.

The report states: “Most Australians do not have private hospital insurance, and

even though the industry gets $6 billion a year in subsidies from taxpayers, the

most common reason people cite for not having insurance is cost.”

Greg Hunt has been sitting on his hands while health costs across the board have

been soaring.

This report identifies policy options which would make savings of $2 billion a year.

The Grattan Institute estimates passing those savings onto patients could save 7 -

10 per cent off premiums and claims this may save private health care in Australia.

Had the Government implemented a root and branch inquiry of the system, they

could be contemplating real savings to sustain the sector, and provide value for

money to consumers.

Last week’s Quarterly Private Health Insurance Statistics have confirmed

thousands of young Australians aged 25 - 34 abandoned their hospital insurance

from June to September.

The Government should accept responsibility when it comes to taking action on

private health insurance reform and call for a root and branch review of the entire

sector to ensure customers are getting value for money.

This report vindicates Labor’s stance that private health insurance should be

examined holistically, and that reform is overdue.

The only way to address the private health insurance crisis is with a root and

branch review of the system.

The time for a review into private health insurance is now.

TUESDAY, 26 NOVEMBER 2019

MEDIA CONTACT: LIZ FITCH 0424 512 512

Authorised by Paul Erickson, ALP, Canberra.