Health minister rejects insurers' bids for large premium increases

Federal Health Minister Mark Butler has told private health insurers to "have another go" after rejecting their bid to lift premiums by up to 6 per cent. Under federal law, health insurers can increase premiums once a year but must seek the minister's approval.

The minister can withhold approval if satisfied the proposed increases are not in the public interest.

Mr Butler said this year's proposals, which he received in November, were not justified or proportionate.

"I've written to every private health insurer, directing them to have another go and put forward a more reasonable figure that considers their years of record profits and the declining proportion of premiums they return to customers, particularly while household budgets are under pressure," Mr Butler said.

The ministerial rejection power was last used by Greg Hunt in late 2019.

The insurers have until late January to resubmit.

https://www.abc.net.au/news/2023-12-19/health-minister-rejects-insurers-premium-increases/103246434