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Health Insurance -
Australian Private Health Cover Increase - 13/05/2008 |
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In Australia it is thought that more than 600,000 Victorians will relinquish their private health insurance. This trend in turn, will mean that there will be more strain on the public hospital system, if the state returns to the participation rate which was in effect prior to the Medicare surcharge that was introduced.
The federal Government came under attack for choosing to lift the income threshold of which the surcharge applied, from about $50,000 to $100,000 for those who are single. The industry of private health Insurance claimed that Australian Prime Minister Kevin Rudd, had gone back on his promise that he made days before the federal election to keep the surcharge the same.
The Association Chief Executive of Australia Health Insurance Michael Armitage: stated that “Mr Rudd had used weasel words to hide his true intentions.” He believed that lifting the surcharge threshold was different to maintaining it, in majority of people’s eyes.
Dr Armitage believed that even after $600 million worth of funds pumped into the surgery waiting lists, public hospitals would still find themselves struggling being $43 million a year worse off. In addition he felt that Premiums would also see a dramatic increase for those, who decided to continue with their private health cover.
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