Fed: People may abandon health insurance after latest hike
The opposition and consumer groups are warning Australians could be forced to abandonprivate health insurance after the latest rise in premiums came into effect today.
An average family policy for private health insurance will cost an extra $2.66 perweek -- or $138 a year -- but some premiums will rise by up to 36 per cent.
The federal government approved the health premium rises in February worth an average6.9 per cent.
The Australian Consumers' Association warns that private cover could be placed outof the reach of many Australians after the latest increase.
The opposition has also raised the prospect that there could be further hikes to comein the next few years.
But the Australian Health Insurance Association has defended the rises, saying thegovernment would not have approved them if they had not been justified.
AAP RTV so/jas
KEYWORD: INSURANCE (CANBERRA)
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