Article

The mounting case for a Royal Commission into banks and insurance companies

20 Sep 2016
Description

We’re paying too much for a bloated financial service sector.

A prominent example is Australia’s largest health insurer, Medibank Private, which in the last financial year absorbed just over a billion dollars of contributors’ premiums in management overheads and profits – $511 million as profit and $516 million as management expenses. Spread over its 1.9 million policies that’s $540 per policy holder.

Using a combination of subsidies and penalties (most notably the Medicare Levy Surcharge) successive governments have bludgeoned Australians into holding private health insurance, even though it has proven to be a woefully ineffective and high-cost mechanism of doing what Medicare can do so much better.

Publication Details
Published year only: 
2016
109
Share
Share
Subject Areas
Geographic Coverage
Advertisement