Labour health cap to hit insurers hard
This is crazy stuff, as price control always is. If health insurance funds cannot raise enough money to cover their claims, what are they going to do? Go broke and leave millions uninsured? There's just got to be an epidemic or two and that could happen
Health costs always run above inflation. The constant flow of new drugs, new procedures and new devices ensures that. They all have to be paid for. So a 2% cap will put a spike in that.
What insurers will do is simply add nothing new to their schedules and quietly remove some of the costlier ones. So there might be a procedure that would restore your health but it will be unavailable to you. It will be available only to the very rich. Is that an ALP policy? It is, apparently.
Leftist health policy is always disastrous. They should just leave health alone. They have no idea about how to improve the situation. They just rely on brute force and that is as dumb as you get
Bill Shorten’s plan to cap health insurance premium increases is set to fuel a $1 billion profit hit to insurers and slow earnings growth for private hospitals.
A wide ranging report by investment bank Morgan Stanley concluded there would be an immediate impact on health insurers if Labor wins the federal election, with the industry needing to address a $1bn earnings hole.
Mr Shorten has promised that should he win the May 18 election that he would cap health insurance premium increases at two per cent for two years, plus order a productivity commission review of the sector.
The 60-page report, led by equity analyst Sean Laaman, said the issue for insurers was that the earnings crunch was coming fast.