Private health covering more older Australians

Feb 16 2005

Australian Medical Association President, Dr Bill Glasson, said today that the AMA was encouraged that older Australians are taking up private health insurance in greater numbers.

Dr Glasson said it is vital that the burden of the health needs of the ageing Australian population be borne by both the public and private sectors.

"Yesterday's figures show that more than 14,000 of the 34,000 new people to take out private health insurance were over 65," Dr Glasson said.

"When the Government's policies of higher private health rebates for over-65s and over-70s kick in from April this year, even more older Australians will seek private health cover.

"More importantly, the higher rebates should stop existing private health insurance holders from dropping out of the system.

"The private health sector currently handles 40 per cent of all hospital admissions and over 50 per cent of all surgery.

"It is proving to be the perfect complement to our high class but overstretched public hospital system.

"This balance must be maintained to ensure the best possible health care for all Australian patients," Dr Glasson said.

Dr Glasson said that while the influx of older members to private health insurance is welcome, it would inevitably increase the number of claims made on insurers.

"The warning signal from the latest figures is the low number of new young members in health insurance funds," Dr Glasson said.

"There needs to be a dramatic increase in young members to keep the risk profile healthy," Dr Glasson said.

http://www.ama.com.au