07
February
2018
|
22:43
Australia/Melbourne

The Australian: Labor ignores real reasons for rising health costs

Bupa's Managing Director of Private Health Insurance, Dr Dwayne Crombie, writes in The Australian, "If private healthcare is going to be sustainable and an effective choice for Australians, then collectively we need to solve the complex challenges that surround it."

A new Labor policy for health funds proposes a 2 per cent cap for the first two years on annual price rises and a Productivity Commission review of private health insurance. Everyone acknowledges and accepts affordability is a big concern for consumers of health insurance. If private healthcare is going to be sustainable and an effective choice for Australians, then collectively we need to solve the complex challenges that surround it.

Australia faces a challenge almost all countries in similar circumstances struggle with, and very few manage health system cost growth below 5 per cent (public or private). Total federal health spending has historically tracked between 5 and 7 per cent a year.

Read the full article.