Sunday 24th of November 2024
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another snow job .....

PM can't rule out premiums rise
with Medibank sale .....

Prime Minister John Howard says he cannot guarantee insurance premiums
will not rise when the Commonwealth sells Medibank Private. 

The major insurer is expected to be
sold in the next 12 months. 

The Federal Opposition says a
document inviting tenders for the public relations campaign shows Medibank
Private cannot guarantee premiums will not rise, and that it fears a class
action from members. 

Mr Howard has told Southern Cross
Radio that competition in the health insurance industry will prevent unnecessary
premium increases. 

"I can't promise the
Australian public that if Medibank Private is sold its premium won't go
up, any more than I can promise the Australian public that if Medibank
Private is retained its premiums won't go up." he said.

Medibank Sale

Gus, I think everyone is missing the point on the sale of Medibank Private, and when the Prime Minister suggests that he can not guarentee that premiums will not go up, well its just another lie,  this is why they HAVE to go up. Medibank Private costings  are based on an expected expenditure (administration + client medical outgoings) plus an amount for reserve or unexpected expenditure, something around 7%, and thats it. If you add in a profit of say 7 % on outlay to purchasor of  Medibank Private then you WILL be looking at an extra outlay by members for profit of some $70 to $700 million a year depending how much it is sold for. Reserves are set by the government and operational costs are at a minimum already. All funds operate in a non profit ? area like this thats why most if not all are mutual societies.