FED: No plans to force wealthy into health insurance

AAP General News (Australia)
08-22-1999
FED: No plans to force wealthy into health insurance

CANBERRA, Aug 22 AAP - The federal government would not force the wealthy to take out more
expensive private health insurance, Health Minister Michael Wooldridge said today.

Dr Wooldridge conceded that figures from his department showed some high income earners
were taking out the most basic cover possible to avoid paying a higher Medicare levy but were
still using the public system.

But he said people had the right to do that if they wanted, and it was only a small number
anyway.

"Our system gives people the right to choose public treatment or private treatment," he
told the Ten Network.

"We don't means-test high income earners out of the public hospitals. That's the nature of
a universal system."

He said it would be possible to force people to take out more comprehensive policies, but
he did not want to.

"There are things I could do, but I don't believe in that high degree of regulation," he
said.

"People have the right to take up-front deductible products if they want.

"They have the right to use the public system or the private system. If they pay insurance
and don't use it, that actually makes it cheaper for all the other people with private health
insurance."

Dr Wooldridge said the government had no plans to lower the threshold at which high income
earners are charged a higher Medicare levy if they do not have private insurance.

At the moment, singles on $50,000 a year and families on $100,000 or more pay an extra one
per cent if they have no private cover.

"We have no plans to drop that at the moment," he said.

"That's just saying to very high income earners - because there's not a lot of people in
the community earning more than $100,000 a year - we expect you to make a contribution for
yourself.

"You can still have Medicare if you want, but you'll pay a little bit more, reflecting what
the cost of providing Medicare is. We think that's fair."

Latest private health insurance numbers showed a marginal increase in member numbers for
the second consecutive quarter, which Dr Wooldridge attributed to the government's $1.7
billion rebate scheme.

"We're making private health insurance cheaper and that's been a stunning success," he
said.

AAP mfh/cjh

KEYWORD: INSURANCE

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