“News that private health insurance companies are again seeking permission to increase their premiums by up to 7% is not just a problem for those with private insurance”, said Dr Tim Woodruff, President of the Doctors Reform Society.

“Whenever these premiums go up, taxpayers pay for 30% of that increase because of the private health insurance rebate”, said Dr Woodruff. “That means another $60 million in taxes directly into the pockets of the private health insurance industry.”

“But it also means another $ 200 million that the Government doesn’t have to spend on the public health system, on our patients who are waiting months and years to be treated in public hospitals, who are waiting hours and days on trolleys in emergency departments, who are not going to their GP because he’s given up bulk billing. Our patients may afford the GP copayment of $10 and then find a bill for $40 for the drugs to treat their illness. And the Government wants to increase that too.”

“But in May last year the government approved a 7% increase in PHI premiums(a $60 million in taxes gift to the private health insurance industry)) and then agreed that CPI increases should be automatic.”

“Fifty five percent of Australians do not have private health insurance, they depend on the public system,” said Dr Woodruff. “We call on the Government to stop spending their taxes on supporting private health insurance which they can’t use, and start spending it on the cash strapped public system which everyone uses.”

13 January, 2003
CONTACT:
Dr Tim Woodruff
National President

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