Keeping Medibank Private public
Lindsay Tanner
posted Tuesday, 16 February 2010
The Government remains committed to keeping Medibank Private in public ownership.
“A publicly owned Medibank Private puts downward pressure on health insurance premiums and encourages innovation in the private health insurance market.” Minister Tanner said today.
Medibank's premium increases are consistently below the industry average:
- Medibank Private’s 2009 premium increase of 5.74 per cent was lower than the industry average of 6.02 per cent.
- Medibank Private’s premium increase in 2008 was 4.64 per cent and was again lower than the industry average of 4.94 per cent for that year.
- Medibank Private is pursuing innovative health management strategies to achieve better health outcomes and lower premium costs.
The Coalition’s plan to privatise Medibank Private would have no impact on the net financial worth of the Commonwealth or the Budget’s underlying cash balance.
Privatising Medibank Private would cost the Budget millions of dollars in foregone dividends, offsetting any public debt interest effect from proceeds of the sale.
“The Government remains committed to returning the Budget to surplus and repaying the debt which has been incurred during the global financial crisis through sound fiscal policy not the fire sale of publicly owned assets.” Minister Tanner added.
Tags: Health, Private Health