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Poll Shows 1.6 Million in Australia Would Drop Private Health/Hospital Coverage With Proposed Government Rebates

Posted May 04 2011 11:02am

Unlike the US, the citizens in Australia have their basic government plant to cover them and many purchase optional health insurance coverage.  With recent changes image being proposed in the form of rebates a poll shows that many would either entirely drop their plans or reduce the coverage.  The last part sounds very familiar to what is occurring here right and left. 

The exact group that is the most profitable are the ones who would be expected to drop out, the healthy younger people and this would stand to increase premiums for others as the entire idea of insurance is to spread the cost over a large group.  Other comments added to the story is that the 1.6 million people would now be relying on the public hospital and care system, so an increase would be seen there as well, that part very much like the US too.  BD 

Proposed changes to the health insurance rebate will encourage more than 1.6 million Australians to drop private hospital cover, a new survey shows.

The report by market research company ANOP and consultant Deloitte surveyed health insurance members about the federal government's plan to means test the 30 per cent rebate.

The report rejected Treasury's forecast of 25,000 consumers dropping their private health cover in the first year the changes come in.

"You are looking at very significant percentages that are going to drop or downgrade for hospital and even bigger numbers in terms of dropping or downgrading their extras cover," ANOP chairman Rod Cameron told media in Canberra on Wednesday.

The government will be claiming savings in the budget of around $2 billion over four years through changes to private health insurance measures.

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