Medibank CEO Craig Drummond said today:
Placing a cap on premiums will not change the issues that exist in the health system.
Each year Australians grow older and sicker and as a result health costs are growing at nearly 7% per annum.
The challenge is making the Australian health sector sustainable. And to do that requires real reforms.
We know our customers are doing it tough, and that’s why we’ve been working hard to deliver better value and more affordable products for our customers.
We’ve delivered savings to our customers by cutting our own costs, we have increased value in our products and passed on 100% of savings from the important prostheses reforms.
In the last two years changes to prostheses alone has delivered a saving of $74 million to Medibank customers, helping us deliver a lower premium than the industry average for two years in a row, and this year our lowest premium in 17 years.
What we need is a plan to continue to address costs in our health system, not just political rhetoric.
The affordability of private health insurance is critical to the sustainability of Australia’s health system. And that’s why we need real and sustainable reform, which is essential to tackling the issue of affordability.
Emily Ritchie, 0429 642 418, firstname.lastname@example.org
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