Private health insurer HCF to resume paying fair share
Monday, 28 October 2024
Private health insurer HCF has agreed to resume paying the correct room rate when using the public system.
Following ongoing dialogue, the not-for-profit fund has notified the NSW Government of its intention to recommence paying the gazetted single room rate.
The decision from HCF leaves the nation’s three biggest for-profit private insurers, Bupa, NIB and Medibank, continuing to refuse repeated requests to pay their bills in full.
Instead, these private funds are persisting with a public fear campaign threatening premium hikes as their profits rise.
This campaign has been backed by the Liberal Party, which is arguing for ongoing taxpayer subsidy of the private health insurance sector even as people endure a cost-of-living crisis.
In the last financial year, the single room rate in NSW was gazetted at $892.
- NIB only paid $491. This cost NSW Health $17.6 million per annum.
- Bupa only paid $501. This cost NSW Health $35.8 million per annum.
- Medibank only paid $515. This cost NSW Health $33.4 million per annum.
The Minns Labor Government passed legislation last week that mirrors the approach taken by then-Treasurer Mike Baird when the Liberal Party confronted the same issue in 2013.
The NSW Opposition refused to support the reintroduction of this bill, with the Member for Vaucluse instead signalling the Liberals support for private insurers to walk away from their bills with no recourse.
The NSW Government remains open to further dialogue with for-profit private health insurers to resume paying the gazetted single room rate.
Treasurer Daniel Mookhey said:
“HCF has decided to do the right thing and return to paying its fair share in the public health system.
“This is significant progress in our ongoing negotiations with the private health insurers.
“However the three big for-profit private health funds, backed by the Liberal party, are continuing to argue for taxpayer subsidies to their businesses during a cost-of-living crisis.
“This is wrong – they should just pay their bills.”
