Australian health funds reject claims from Healthscope and its North American private equity owner, Brookfield, in advertisements running today.
This campaign is designed to pressure Australian health funds and the Australian Government into bailing out Brookfield from bad business decisions, including the underpayment of Australian staff.
Brookfield is managing more than $1.4 trillion in assets. It can afford to bail itself out. Australian health funds won’t let their members foot the bill through their health insurance premiums.
Australians with health insurance are our top priority
15 million Australians are paying for health insurance, including 12 million with hospital cover. We know our members want rapid access to high quality private hospital care where and when they need it, so we’re helping the private hospital sector through a difficult time.
However, health funds will not do anything that drives up the cost of health insurance for people contributing to their own healthcare in a cost-of-living crisis.
Health insurance provides value for money
Data from the Australian Prudential Regulation Authority shows health insurance returns more value to consumers than any other type of insurance, including car insurance and home and contents insurance.
This year, health funds delivered an average premium rise of 3% – lower than the rate of inflation, and the rising cost of essentials such as food and groceries.
Health insurers are providing fair funding to hospitals
Health funds paid an extra 8% to private hospitals for care they delivered in the year to June 2024, and multiple health funds have provided one-off payments worth tens of millions of dollars to help some hospitals with debt.
Health insurers won’t let essential services close
There is no doubt some private hospitals have struggled with rising costs and inflation. If a private hospital in an area of need is in danger of closing imminently, health funds will step in to support it.
Private hospital closures have been exaggerated
Some reports about private hospital closures are exaggerated. Australia has more private hospitals than it did 6 years ago. It is highly unlikely people with health insurance will face barriers to private hospitals if they need treatment right or in future.