Major private health insurers in NSW are facing potential price increases due to new legislation that requires them to contribute more for using state hospital beds. The government passed a law taxing insurers $3.27 per person per week, citing that insurers like HCF, NIB, Bupa, and Medibank were not paying their fair share, costing the health system $140 million annually.
Similar legislation was enacted in 2013 under prior leadership, leading to an agreement between the government and insurers. However, tensions rose again in 2019 when insurers began pulling out of the agreement. Treasurer Daniel Mookhey and Health Minister Ryan Park emphasized the importance of insurers paying their fair share to alleviate financial strain on the state.
Private Healthcare Australia CEO Dr. Rachel David expressed concerns that the legislation would lead to higher premiums and a decrease in the number of people holding health insurance in NSW. Despite this, Treasurer Mookhey emphasized that insurers should honor their financial obligations and not burden customers with increased premiums.