Private health insurers profiteer while squeezing policyholders
The federal AMA’s latest Private Health Insurance Report Card has found that 360,000 consumers have dumped their gold-tier policies since 2020 while insurers’ profits rose by 50 per cent over six years compared to patient benefit payouts increasing only 18 per cent.
Between 2008 and 2024, premiums climbed more than 100 per cent, while Medicare indexation — which was frozen for several years from 2013 — increased by less than 20 per cent.
In a media statement, AMA President Dr Danielle McMullen said public hospitals were logjammed, which is pushing more patients towards the private sector. However, runaway insurance premiums, low-value offerings and shady tactics like product phoenixing leave customers facing tough choices about the level of cover they can afford.
“The need for a Private Health System Authority to better regulate the sector and drive long-term reform has never been more crucial. There are too many bodies involved in the regulation of private health — a single, independent authority would provide a unified and coherent approach.”
