Medibank Bank Private Health Insurance fear a dramatic loss in its members if Labour succeeds in the ‘means test’.
After failing to pass the Senate twice, the Federal Government are proposing to ‘means test’ individuals and families in particular salary brackets following implementations of rebate reductions as well as surcharge penalties.
CEO of Medibank, George Savvides has estimated 15,000 members will drop coverage all together with a further 2.5 percent of its members downgrading to more affordable policies.
The changes could see an increase in health insurance premiums as well as a dramatic decrease in hospital cover, putting more pressure on the already struggling public system.
In a statement regarding the means test changes earlier this year, Health Minister Nicola Roxon said “The government’s modelling has consistently shown that our proposed changes to private health insurance rebates will not have significant negative effect upon private health insurance coverage, premiums, or demand on public hospitals,”
Medibank were recently celebrating after the successful acquisitions and expansions leading them to be in their strongest financial position in the company’s history. Mr Savvides will not reveal the forecast of financial impact the changes could have on the business due to commercial reasons.
Medibank are Australia’s largest private health insurer with over 3.4 million members. They offer a variety of health, hospital, and life insurance products.
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