Federal Libs join the fight on health insurance

The NSW Government is continuning its fight against private health insurers, revealding exactly how much it says the big four providers owe the government.

The NSW Government has revealed how much it says private health insurers owe it.

The Federal Coalition has accused the Minns government of a cash grab on Australians with private health cover after The Daily Telegraph revealed on Monday that NSW Health bureaucrats had threatened to hike state taxes on private health insurance in order to recoup money they claim they are owed by insurers.

The biggest four private health insurers in the state have been accused by the Minns government of refusing to pay over $100 million in fees per year for customers who request private rooms in public hospitals.

Federal opposition health spokeswoman Anne Ruston accused the Minns government of trying to charge more for the federal regulated rate for each private patient who receives care in a public hospital. She called on the Albanese government to step in and stop it.

“In the middle of a cost-of-living crisis, the Government should not be using private

patients as a way to fix their budget mess,” she said.

“This would set a concerning precedent for other States across the country to follow

suit.

“The more than 14 million Australians who rely on private health insurance cannot

afford this cash grab in the middle of the Albanese Government’s cost-of-living crisis.”

This comes as private health insurers gear up for a massive fight with NSW Treasurer Daniel Mookhey over government threats to force providers to pay almost $900 per day in fees.

Providers warn the move would increase premiums for typical policies by $114 a year and force 60,000 people to drop their cover.

NSW treasurer Daniel Mookhey. Picture: Justin Lloyd.

The Daily Telegraph can now reveal the exact amounts the NSW government says the biggest four insurers owe the government.

The government says in not paying the full fees, Medibank owed the $28.7 million in the 2023/24 financial year. BUPA was requested to pay $29.8 million, HCF $29.75 million and NIB was at $17.44 million.

Mr Mookhey said the government expected private insurers to “pay their fair share” when it comes to using public hospitals.

“It is really disappointing that 10 out of 53 private health funds have decided they wouldn’t pay their bills and as a result have stuck the public with the cost,” he said

“Every dollar that a private health fund refuses to pay comes out of the pocket of every taxpayer in NSW.”

This is not the first time the NSW government has been in conflict with health insurers, with the big four agreeing to pay the single room accommodation rate in 2013 after former Liberal premier Mike Baird in 2013 threatening to legislate higher health insurance taxes if companies did not pay their fees.

In letters from Bupa, NIB, HCF and Medibank to NSW Health in 2013, seen by The Daily Telegraph, the insurers agreed to initially pay the single room fees. The four later sent letters in 2019 alerting NSW Health they would be reducing the overnight single room fee they pay to the state government.

In the 2019 letter from HCF, the insurer stated it was necessary to lower their payments to achieve “consistency and equity” across all states and territories.

Private insurance companies have warned that if the Minns government forces companies to either pay the bed fee or hikes taxes on private health insurance, premiums will skyrocket affecting four million people.

The Daily Telegraph can reveal that the majority of people the price hikes will affect live in state Liberal electorates. According to data from industry body Private Health Australia, of the top 20 areas where the most residents have private health insurance, 16 are Liberal seats, with three Labor and one independent. The North Shore electorate of Davidson would be the most affected with 88.3 per cent of residents

Originally published as Federal Libs join the fight on health insurance