Abbott to sell Medibank

[i-need-a-martini]

There goes the benchmark that keeps our insurance premiums at a decent level.

I don't even understand why this is even necessary given that Medibank makes a profit? It's as if decisions are being made without any thought goig into it other than they promised to do it in 2007 so this is their way of punishing voters for not voting for them in at that time.

What other reason could there be?

http://www.smh.com.au/federal-politics/political-news/abbott-moves-towards-medibank-private-selloff-...

[freshwater-2]

I think there is some confusion over the diffeerence between MEDIBANK and MEDICARE.

This is a cut and paste.

Medicare vs Medibank

Health care has become very expensive these days and treatment for ailments in a hospital have gone beyond the means of common people. It is not just the prices of drugs but fees of doctors and hospitalization charges have become so high that is prudent to get some sort of medical insurance to pay for medical emergencies. This is where Medicare and Medibank come into play if you are an Australian citizen. Many people remain confused between Medicare and Medibank as they do not know the differences. Here is a brief description of these two terms that will enable such people to go for the right health insurance plan that suits their requirements.

Medicare

This is public healthcare system funded and operated by a government authority called Medicare Australia. It intends to provide subsidized medical treatment to all citizens and permanent residents. Citizens are provided with a Medicare card and they become eligible for a rebate in medical care from medical practitioners who have a Medicare provider number and free treatment in government hospitals. People confuse it with Medibank because Medicare, when introduced in 1975, was named Medibank. It was in 1984 that it got its present name Medicare.

Since 1999, Medicare has got a boost with government supplementing it with Private Health Insurance Rebate program. Under this program, government pays for 30% of health premiums of people who have got some health cover by any private health insurance company.

Medibank

Though government owned, Medibank is the largest private health insurance company that issues health insurance policies to Australian citizens. It is present in every Australian state and territory. This is a company that not only provides health insurance but also provides health solutions. Till 2009, Medibank was run as a not for profit company, but labor government in 2009 announced that Medibank would be transformed into a for profit company and will have to pay taxes on its earnings.

[icyfroth]

If previous Treasurers had've managed Australia's finances better without resorting to selling off Australia's assetts, Mr Abbott may have been in a better position to stave of the international raiders that are now looting our country? D'you think?

I think Mr Abbott has been handed the poisoned chalice.

[the_hawk*]

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@icyfroth wrote:

If previous Treasurers had've managed Australia's finances better without resorting to selling off Australia's assetts, Mr Abbott may have been in a better position to stave of the international raiders that are now looting our country? D'you think?

I think Mr Abbott has been handed the poisoned chalice.

---

As it goes around and around at nearly every election from one party to the other and then back again they are both to blame because their policies swing from one exstream to the other with only self gain as a motive.

policies are short term, short sighted with self serving motities that are not benificial to the population, and that goes for both magor parties, they are both as bad as each other.  

[purplecarrot-top]

So what happens when all the assets are sold and there is noting left?

[*crikey*mate*]

HCF is less expensive that medibank

But anyway

This does seem like an odd move to me, if the intention is revenue raising.

Once this is privatized, the gov have no means of controlling the costs, do they? I mean, this medibank acts like a price regulator, whilst sharing the insurance load with other companies as well.

Without this, could costs escalate?

I'm thinking they do

Which, in this instance seems strange to me, as it is in the best interest for the government to keep/get as many people into private health as possible - it takes the load off the public system and helps keep those costs down.

We're already in trouble in the health budget as health care costs are spiralling and the new negligence Laws and subsequent NDIS are only going to push those further.

The Govt has to know this,

So is this a case of they KNOW that insurance business is going to become cost prohibitive, in which case this makes sense to me, so I'm interested in the bottom line here - will the claims become too high so that the premiums make this a non profit business for the govt?

ATM, without knowing the financial nuts and bolts logis behind this, I am tiotally against this.

Now I have private health insurance, BUT if this is sold off and no regulatory framework is imposed then I will really object to the 30% discount that we currently get.

All this does is allow the insurance companies a vehicle to put their prices up accordingly until such time the 30% is eaten uop anyway, and the money ios just going to the insurers, not really the tax payer.

Hopefully MonMan could explain the economics in this decision to me.

Or is there someone who could explain it sensibly without taking a biased view or making derrogatory swipes at the Govt?

I'd just like to understand the base economics behind a decision like this, and I believe it is about more than a quick couple billion to pad the coffers short term.

The only thing I can think of for this sale is that the health insurance business is now unsustainable, so the Gov is getting out.

With the new limits on negligence payouts (which only help the insurance companies) this puts greater strain on our health system.

[**meep**]

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@darksideofthemoon wrote:

Well there goes another good thing that helped so many people who could not afford private funds.  

Now what will they do?  Are we going to copy America in that too?  I believe they are in an awful situation.

---

???????????????????

[monman12]

DSOTM: "Well there goes another good thing that helped so many people who could not afford private funds."
??????  Medibank is an Australian government-owned private health insurer.

INAM: "so this is their way of punishing voters for not voting for them in at that time." Actually INAM it has always been the Coalition policy from Howard's days to sell Medibank.

There is no compelling policy reason" for the government to retain ownership of Medibank, which operates in a competitive market against 34 other health funds." It  also makes sense to free up funds ($4 billion)  for other uses/investments (assets)  that could be in the taxpayers interests, because government here should not be running businesses.

Finally: "UNION heavyweight Paul Howes has urged Labor to back the sale of Medibank Private, saying the party must slay sacred cows such as its stance on selling public assets.  Mr Howes said Medibank Private "is not a price leader in that market, it's more expensive than many of its competitors, it does not have a monopoly of that market".

[the_hawk*]

---

@freshwaterbeach wrote:

I think there is some confusion over the diffeerence between MEDIBANK and MEDICARE.

This is a cut and paste.

Medicare vs Medibank

Health care has become very expensive these days and treatment for ailments in a hospital have gone beyond the means of common people. It is not just the prices of drugs but fees of doctors and hospitalization charges have become so high that is prudent to get some sort of medical insurance to pay for medical emergencies. This is where Medicare and Medibank come into play if you are an Australian citizen. Many people remain confused between Medicare and Medibank as they do not know the differences. Here is a brief description of these two terms that will enable such people to go for the right health insurance plan that suits their requirements.

Medicare

This is public healthcare system funded and operated by a government authority called Medicare Australia. It intends to provide subsidized medical treatment to all citizens and permanent residents. Citizens are provided with a Medicare card and they become eligible for a rebate in medical care from medical practitioners who have a Medicare provider number and free treatment in government hospitals. People confuse it with Medibank because Medicare, when introduced in 1975, was named Medibank. It was in 1984 that it got its present name Medicare.

Since 1999, Medicare has got a boost with government supplementing it with Private Health Insurance Rebate program. Under this program, government pays for 30% of health premiums of people who have got some health cover by any private health insurance company.

Medibank

Though government owned, Medibank is the largest private health insurance company that issues health insurance policies to Australian citizens. It is present in every Australian state and territory. This is a company that not only provides health insurance but also provides health solutions. Till 2009, Medibank was run as a not for profit company, but labor government in 2009 announced that Medibank would be transformed into a for profit company and will have to pay taxes on its earnings.

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Thankyou for pointing that out, my error

[icyfroth]

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@purplecarrot-top wrote:
So what happens when all the assets are sold and there is noting left?

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Depression

[cherry*135]

Australia is not the only country where the Govt have sold off some of its assets (rightly or wrongly - that's debatable). Who can those other countries blame for the selling off of those assets? The last Australian Labor Govt?? lol