Today in the AFR, the head of the private health insurance lobby group “PrivateHealth Australia” showed the industry is very worried by suggestions by The Australia Institute and others that private health insurance fees should be subject to GST.
When the GST was introduced, John Howard ensured private health insurance fees were not subject to GST, and at essentially the same time, he introduced the “Lifetime Health Cover”, which meant if you did not join private health insurance by the time you were 30 you would have to pay higher fees were you to join it later.
The problem is that even with this virtual forcing of people onto health insurance, most people take out the minimum health insurance they need to qualify for the lifetime health cover, and usually this means lots of things are excluded from the cover, and also you have to pay a lot of excess payments should you actually need to use it. It is not health insurance in any true sense, but it is wonderful for private health insurers.








