Anthony Albanese pushes back on health insurance funds over premium increases

Anthony Albanese says he makes ‘no apologies’ for pushing back against major health funds seeking to get the best deal from the government over insurance premium rises.

Prime Minister Anthony Albanese on Wednesday accused insurers of unfairly lobbying the government, saying they wanted Labor to ‘tick and flick‘ on health insurance increases.

Anthony Albanese says he makes “no apologies” for pushing back against major health funds over insurance premium rises, dismissing industry concern the annual decision was being delayed until after the Dunkley by-election.

This comes after The Australian revealed concern from six of the nation’s largest funds that say it is the longest wait on a premiums call from a government in 15 years, and they did not have enough time to notify customers of any price increase if Health Minister Mark Butler did not make a decision this week.

The Prime Minister on Wednesday accused insurers of unfairly lobbying the government, saying they wanted Labor to “tick and flick” on health insurance increases. He also hosed down concerns the decision was being delayed, saying the decision was occurring at the normal time, either at the end of February or beginning of March.

“We make no apologies for pushing back against these health funds. The health funds have got a story out there in their interests. That’s what they do. And I reckon people will see through it pretty clearly,” Mr Albanese told the ABC.

However, Mr Butler’s decision is already more than three weeks later than the February 6 announcement last year, and months longer than the December announcements made between 2018 and 2021 under former Coalition health minister Greg Hunt.

Mr Butler on Wednesday refused to say how much insurance premiums would go up on April 1 but reiterated that his decision “won’t be rushed”.

Insurers expect the average weighted premium will be below inflation but have been left in the dark on when they will be informed of the change.

Mr Butler said he was going through the proper processes and seeking to get the best deal for consumers. “I’ve gone back to the industry and indicated my expectation that they sharpen the pencil,” he said. “This has always been a process for the government: it should have con­sumers front of mind.”

Mr Butler blasted The Australian’s reporting on concern from major health insurers, calling it “a beat-up, complete fiction … it is not unusual at all for these decisions to be made in the last week of February or the first weeks of March,” he said.

The Australian stands by its reporting.

A senior industry source on Wednesday contacted The Australian after the story was published, doubling down on claims the government was delaying the decision.

“I’m sure you are aware that your reporting today has been correct and the government has been deflecting,” the source said.

“A number of insurers who were required to resubmit have been told their resubmitted premium applications have been approved but they can’t do anything about it until the minister makes an announcement.”

Multiple industry sources were fearful of going on the record on Tuesday ahead of the decision about premium increases being taken by Mr Butler.

One senior figure in a major health fund, who wished to stay anonymous over fear of reprisals, said the government’s delay was “unheard of” and “weird”.

“It has always been announced by now,” another source said. “There is concern from the industry that the longer they leave it, the less notification customers will have if there is an increase coming.

“People are speculating the government wants to wait until Dunkley is done. It’s all about Dunkley and cost of living.”