Updated

Labor’s hospital funding push to cost health funds $1b a year

Michael Smith and John Kehoe

Updated Apr 7, 2025 – 2.40pm, first published at 10.20am

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Health Minister Mark Butler has put private health insurers on notice that they will be forced to tip in up to $1 billion more every year to help struggling private hospitals remain open if Labor wins the federal election.

Butler said health funds must “urgently” work on lifting the percentage of their premiums they pay to hospitals. His comments are the clearest indication that Labor is serious about forcing funds such as Medibank Private, Bupa and NIB to tip more money into hospitals, a move they oppose.

Michael Smith is the health editor for The Australian Financial Review. He is based in Sydney.

John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury.