Queenslanders paid $615m more on health insurance in 2017 than received in benefits

QUEENSLANDERS last year paid $615 million more on health insurance premiums than they got back in benefits.

QUEENSLANDERS last year paid $615 million more on health insurance premiums than they got back in benefits.

Recent data from the Australian Prudential Regulation Authority shows Queenslanders paid $4.59 billion in health insurance last year, while insurers paid out $3.97 billion in benefits, enabling insurers to pocket 13 per cent of what they charged, according to Labor analysis of the figures.

Opposition health spokeswoman Catherine King said this was an example of why the health insurance industry needed to be overhauled.

“Australians are paying more than ever for private health insurance, and they’re still being stung when they try to use their cover,” she said.

Opposition Leader Bill Shorten recently announced that a Labor government would cap private health premiums at 2 per cent for two years and order a Productivity Commission inquiry into the industry.

But Private Healthcare Australia chief executive Dr Rachel David said the profit margins had been stable at 4.5 per cent to 6 per cent for more than a decade.

“These figures also confirm there’s no pot of gold hidden in health funds,” she said.

“Funds are paying 86 cents in the dollar in benefits, compared with 64 cents for general insurance.

“There is only one reason premiums increase, and that is because health funds are paying for more health care.”