Posted by Michael Wonder on 10 Sep 2019
Greg Hunt's medical deals come back to bite him
11 September 2019 - Health minister Greg Hunt’s efforts to rein in growth in private health insurance premiums looks like collapsing in a heap after a surge in the volume of medical devices sold in Australia in 2019 wiped out a promised $250 million in cost savings for insurers.
Insurers will be pushing for a higher percentage growth in insurance premiums for 2020 in negotiations with Hunt over the next few months. This carries some significance for investors in Medibank Private and NIB Holdings.
The insurers are angry that Hunt has not delivered his side of a compact which led to the lowest increase in premiums in 17 years in 2019 of 3.25%.
