Medibank's 13 per cent rise unlikely to go through: Costello
The Sydney Morning Herald
The federal government was unlikely to approve a plan by health insurer Medibank Private to lift premiums by 13 per cent, Treasurer Peter Costello said today.
Medibank Private has asked the government for permission to lift premiums, reportedly by 13 per cent because of a 60 per cent jump in payouts caused by the influx of new members.
"If it's 13 per cent, I can't imagine that the full 13 per cent would be approved," Mr Costello told Melbourne ABC radio.
"I can't see why you would need a 13 per cent rise in a situation where the numbers who are taking out insurance is increasing, not decreasing, where your consumer price index (CPI) is nowhere near 13 per cent.
"I will be looking with great interest to see why they say it, and if it's not a good reason, I can't see why it would be approved."
Mr Costello said Medibank Private might have a case for a CPI rise - currently at 3.1 per cent - but no more.
"Unless it's got a real left field reason that no-one in the industry has thought of, I can't imagine it (13 per cent) will be approved," he said.
"There might be a case for a CPI-type increase."
AAP