The sums still do not add up on private health insurance. Yesterday the Private Health Insurance Administration Council announced the third consecutive quarter of increases in private health insurance cover from a record low of 30.1 per cent of Australians in December 1998 to 30.9 per cent now. The last quarter’s increase was from 30.5 percent. Though there have been three increases on the trot, they have been very small. They do not justify the Federal Government’s $1.7 billion a year subsidy of private health insurance through tax rebates.
Yesterday’s figures show the rebate scheme is tinkering at the edges. It is a big fat needless subsidy to people who already have private insurance, nearly all of whom had no intention of dropping it.
In the last quarter a further 100,000 people have taken up private insurance. At best this has added $80 million to the health system. It is not a very satisfactory outcome for such a huge financial input by the Federal Government. The $1.7 billion would have been better spent by putting it directly into public hospitals or even putting some of it into private hospitals.
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