Private health insurers are skipping out on the cost of public hospital beds their members use, costing taxpayers and boosting their bottom line by $140 million a year.
Currently, NSW public hospitals are heavily subsidising some private health insurers – a burden our health system can no longer shoulder.
NSW Health estimates the average cost of a hospital bed at $1,075 per day.
Last year, NSW Health charged private health insurers below cost, at a rate of $892 per hospital bed, per day – a 17 per cent subsidy.
Many insurers are doing the right thing and paying for the full cost of services they use. However, a select group of private health insurers are not paying their fair share – many only contributing $474 per hospital bed, per day – a 56 per cent subsidy from the people of NSW.
Private health insurers skipping out on the costs of public hospital beds is costing NSW hospitals $140 million every year – for the last five years.
This could employ an additional 1,000 senior nurses.
Thankfully, 44 of 53 private health insurers have agreed or are currently paying their fair share. But some of the largest insurers have held out, refusing to pay their fair share to the public health system while raking in record profits.
Treasurer Daniel Mookhey:
“The refusal of private insurers to pay their bills is robbing the public system of critical funds.
“This has been a very reasonable request to private health insurers to simply resume paying their fair share.
“I commend those smaller and not-for-profit insurers who are doing the right thing.”
Minister for Health Ryan Park:
“So many not-for-profit insurers have managed to do the right thing, including the health funds for police, nurses, navy and teachers.
“I commend those insurers who have paid their bills in full as well as those who have indicated they will resume paying in full.
“But we’re seeing some of the largest for-profit insurers, who enjoy billions of dollars in profit each year, sticking taxpayers with the tab.
“This really is not sustainable.”