Changes in recent years to private health insurance - Essay Example

people reported that they could not afford to purchase a health insurance or the costs of these insurances is too expensive.1 Aiming to encourage more people to acquire a health insurance, the Australian government took the initiative in offer a 30% rebate on the cost of private health insurance premiums for people between the age bracket of 0 – 64; a 35% rebate for people aged 65 to 69; and a 40% rebate will be given to people ages 70 and above.2 The said rebates is claimable either as a reduction on the insurance premium as soon as the payment is made to the private insurer or as a rebate through the individual’s tax return.

In line with the new structure set by the Australian government, this study will focus on discussing several issues which will serve as strong evidences that the 1/3 rebate strategy has been ineffective and unsuccessful in increasing the sales of private health insurance as well as maintaining the quality of the overall all health services in the country. The main goal of Australian Federal Government for implementing a 30 – 40% rebate system in private health insurance is to improve the health of Australian citizens through payments and information.

3 In line with the said goal, Medicare works with the Australian Government Department of Health and Ageing to improve its connection with the health sector. In September 2002, a total of 79.4% of the medical services that was performed in the hospitals was fully paid by the Australian government. This increased to 82.7% in December 2005.4 As a control measure, the local authorities implemented a ‘co-payment agreement’ to those who wishes to avail the medical services in the hospitals. According to Tracy Schrader, “any transfer of payment for health care from taxation to user-fees only benefits the wealthy.

”5 This is primarily because of the fact that wealthy people will have a better access to the health facilities at a much lower costs. On the other hand, people belonging to