27 June 2018 - Labor’s proposed 2% cap on health insurance premium increases would lead to eight insurers operating at a loss in the first year and put three on the brink of insolvency in the second, according to an industry analysis.

The biggest health policy from Bill Shorten to date — capping premium increases at roughly half the current rate for two years to allow for another inquiry — would also put the more dominant health funds at a competitive ­advantage.

Slashing premium revenue would likely prompt insurers to reduce benefits and payments, undermining several years of reforms before a Labor government would even be in a position to ­respond to an inquiry by the Productivity Commission.

Read The Australian article