The Federal Government has used a report that found that the private health insurance industry increased its premium revenue by $1.25 billion last financial year to continue its push for means-testing.

 

The Private Health Insurance Administration Council’s Operations of Private Health Insurers Annual Report 2010-11 found that the industry expanded its revenue by 8.8 per cent to post a total of $15.4 billion.

 

The report also shows that benefits paid out to members increased by 7.6% and that 45.3% of Australians were covered by private hospital insurance at the end of the last financial year.

 

Minister for Health Tanya Plibersek said private health insurance incentives were introduced in 1997 when the sector was struggling and incentives were required to encourage Australians to take out policies.

“However, the private health insurance rebate is now one of the fastest growing areas of health expenditure, and is expected to cost taxpayers around $5 billion in 2011-12. The Government’s reforms would save taxpayers about $2.4 billion over three years,” Ms Plibersek said.