6 November 2019 - Medibank Private boss Craig Drummond has taken aim at the ballooning medical costs he believes are eroding the affordability of private health insurance and which on Wednesday was blamed for stripping $800 million from Medibank’s market value.

Issuing a warning about the sustainability of the industry as well as the profitability of Medibank — the nation’s biggest private health insurer — Mr Drummond said “something didn’t feel right” in the recent spike in hospital and surgical volumes and that the “maths do not work” in the current costs and insurance premiums structure.

His comments come as health insurers are facing pressures on several fronts including government scrutiny on annual premium rises, declining member­ship and an ageing population that is demanding more health care services.

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