A Healthy Fee Rise For Insurance

Newcastle Herald

Thursday March 2, 2006

By ALICE KELLY Health Reporter

SOME families will be billed up to $260 more a year for private health cover with some of the biggest insurers while others will not pay any extra.

Private health insurance costs will increase by 5.7 per cent on average from April 1 but premium increases appear to vary widely depending on fund, level of cover and excess.

The rises come as an Australian Bureau of Statistics survey released yesterday showed about half of all Australians did not have private health insurance, with 64 per cent of those saying it was too expensive.

Medibank Private will increase the cost of its premium hospital cover with excess by $116.22 a year for families after the Federal Government 30 per cent rebate is factored in, but this rises to about $260 for the fund's top cover.

The price increase is $65.54 for the cheaper First Choice hospital cover with $250 excess.

Medibank Private has increased premiums by an average of about $1 a week and managing director George Savvides said covering members was rising sharply.

MBF will charge families $125.64 a year extra and singles $68.53 for its HealthSmart hospital and ancillary cover with $250 excess, with an average premium increase of 5.77 per cent.

Families on NIB's Gold hospital cover with excess will pay $101.40 more, but those on NIB's Bodyguard package will pay nothing extra.

NIB chief executive Mark Fitzgibbon said rates would increase by 4.85 per cent.

The three funds said they would improve benefits to offset the increases.

Australian Consumers Association health policy officer Viola Korczak said premiums had increased by 33.4 per cent since 2001 and an association survey showed people paid about $700 on average in gap fees after hospital treatment.

"It is really not a sustainable system and not the best use of taxpayers' money," she said.

AT A GLANCE

Yearly price increase from April 1*

NIB

Cover Bodyguard Safeguard Gold

Families $0 $67.60 $101.40

Singles $0 $33.80 $49.40

Prices are for highest excess

Medibank Private

Cover First Choice Smart Choice Blue Ribbon

hospital hospital hospital

Families $65.54 $98.80 $116.22

Singles $32.76 $50.18 $56.68

Prices are for $250 excess singles and $500 excess families

MBF

Cover Advantage Adv Hospital Hosp + Ancillary

Hospital ($250 excess) ($250 excess)

Families $96.90 $64.68 $125.64

Singles $48.45 $32.34 $62.82

*All prices include Federal Government 30% rebate.

© 2006 Newcastle Herald

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