The PHAA Welcomes Moves on Private Health Insurance

DEAKIN, Australia, Feb. 4 -- The Public Health Association of Australia issued the following news release:

The Public Health Association of Australia (PHAA) has today welcomed moves to have the Productivity Commission examine the Private Health Insurance industry to ensure a better outcome for all Australians.

"It is inappropriate that taxpayers subsidise the private health insurance industry to the tune of $6 billion per year while Australia's universal health care system, Medicare, is constantly under question regarding costs and expenditure," argued the CEO of the PHAA, Michael Moore.

"Labor's announcement today by Hon Bill Shorten and Hon Catherine King to put a stop to the Private Health Insurance increases and to refer the issue to the Productivity Commission is welcomed by the PHAA and should be welcomed by all Australians and particularly by all Senators and MPs," added Mr Moore.

According to Mr Moore, "the reality is that premiums have been going up exponentially and there have been a plethora of "junk policies" that deliver very little for individuals but huge profits for the private insurance companies while effectively undermining Medicare".

The worse off in our community are suffering most. Either they can afford only the least effective cover or they rely on Medicare. The Productivity Commission ought to examine why it is that $6 billion of taxpayer subsidies annually are misdirected to the private health industry rather than being injected into Medicare where people can be treated according to their need rather than according to what they can afford.

Access to appropriate, high quality health care should be regarded as a human right. Australia is committed to implementing the United Nations Sustainable Development Goals (SDGs). SDG #3 calls on countries to "ensure healthy lives and promote well-being at all ages. Additionally, the World Health Organization is committed to Universal Health Care stating it "means that all individuals and communities receive the health services they need without suffering financial hardship".

Australia should be moving forward on Universal Health Care instead of falling backwards. The recommendation by Labor to have the Productivity Commission examine "the balance between the private system and Medicare - Australia's universal public health insurance scheme" is timely. The other terms of reference seek to tease out affordability of private health insurance, effectiveness and the "carrots and sticks" allowing the Productivity Commission to make a proper assessment and should be welcomed.

"Scare tactics by the Private Health Insurance industry as set out in a release today by Private HealthCare Australia with statements like "Labor's plan makes absolutely no economic sense and the longer-term impact on Australians and our health system could be disastrous" should not be surprising. However, they should be rejected out-of-hand. The focus of this industry is on profits and return to shareholders rather than the health of all Australians," added Mr Moore.

The Productivity Commission is a sensible, independent way of assessing the most effective way forward. Capping the increase in premiums while the Commission does its work is the interest of ordinary people and simply makes sense," concluded Mr Moore.