Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

It's that time of year when Australians receive that letter from their health fund telling them their private insurance premiums are going up—again. For those who can't get joint funds, the disincentive rises with every fee hike. Punitive lifetime health cover loading compounds this and discourages people from joining when that age kicks in. I understand health insurance costs increase, but the cumulative private health insurance increases between 2015-16 and 2019-20 totalled 22.28 per cent. When you compare that with wage growth over that period at 10.62 per cent and CPI at only 6.44 per cent, it isn't fair. It's not sustainable.

My constituents are telling me that their out-of-pocket expenses are ever-increasingly unpredictable and their private health insurance premiums are growing and growing. One retired couple have to find an extra $30 a month. That is incredibly difficult. They are self-funded retirees. They rarely claim, but every month they need to find more and more, and their income isn't increasing to do so. Recent government tools, such as the premium comparison tool and the Medical Costs Finder, are really good, but they're not helping premiums to go down. Consumer research shows that these premiums are the top household concern, above fuel and even electricity costs. Cost is a main reason why people drop out of private health insurance or they lower their levels and their inclusions. This is compounding the challenges within the private health insurance system. It's the younger, healthier people who are dropping out, and the older people who are holding on to their health insurance for dear life even when they can't afford it.

Industry observers have said that we need to have an in-depth inquiry into the viability of Australia's private health insurance sector, because the younger ones are leaving and the older ones, who have paid their taxes throughout their lives, have paid their premiums, are still paying, paying, paying. I would like to see a system where when someone reaches over 65 the increase they receive is no more than whatever increase goes to the pension, whether they be self-funded retirees or pensioners. I call on the government to urgently look at this. This is a crisis in our community. We need to have in-depth changes to make health insurance and the whole system more affordable, sustainable and equitable for all Australians.