Health insurance hikes spark anger

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PRIVATE health insurance members are taking to social media to voice their frustration at the latest premium hikes.

FAMILIES will be slugged about an extra $200 a year when health funds lift their premiums by an average 5.59 per cent on April 1.

Health Minister Sussan Ley gave the green light to private health insurers to raise premiums on Wednesday, saying this year’s rise was below the 6.2 per cent allowed in 2015. But that news was no consolation for policyholders. “I would like to see the figures where the private health insurers can justify such a high price rise compared to the cost of living and inflation rates,” Warren Herrick wrote on Facebook. Mother Yarby Therese said the premium hike spelled the end of private health for her family. “Just can’t do any more increases like that and that money is better off in our mortgage,” she wrote. Kay Ross lamented that ordinary Australians were losing out. “Why is it so hard for the health minister to say No!,” she wrote. Michael Siddle directed his anger towards the insurers: “This is a disgrace and just lining the pockets of the funds.” However, the health funds argue that the fee increases are needed to help them cope with the rising costs of healthcare, combined with Australia’s ageing population. “Australians are being admitted to hospital more and receiving more treatments each stay than ever before,” Medibank Private managing director George Savvides said. Consumer advocacy organisation Choice says health insurance policy holders should consider dropping extras cover to save thousands of dollars. “You need to find out if you’re paying more to your health insurance fund than you’re getting back in benefits for extras services such as going to the dentist,” Choice spokesman Tom Godfrey said. “So get your insurer on the phone and ask for a claims statement.” Comparison website iSelect suggests people should shop around for a new provider if they are unhappy with the fee hikes. Some insurers are increasing their average premiums by more than eight per cent, while others will pass on increases of around four per cent. “This difference highlights the importance of taking the time to review your cover and compare how it stacks up against other providers,” iSelect spokeswoman Laura Crowden said.