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Insurers warn of premium hikes after losing NSW bed rate battle

The article from the Australian Financial Review discusses the potential increase in health insurance premiums following a decision by the New South Wales Independent Hospital Pricing Authority (IHPA) to reject a proposal by private health insurers to lower hospital bed rates. Insurers had sought to reduce these rates to manage costs, but the IHPA's decision to maintain current rates could lead to higher premiums for consumers. This comes at a time when health funds are already facing financial pressures due to rising healthcare costs and the need to cover new, expensive treatments. The article highlights concerns from insurers like Medibank and NIB about the sustainability of private health insurance if costs continue to escalate without corresponding adjustments in pricing or government subsidies. There's also mention of potential government intervention to stabilize the market, although no concrete actions have been confirmed.

Read the Full The Australian Financial Review Article at:
[ https://www.afr.com/companies/healthcare-and-fitness/insurers-warn-of-premium-hikes-after-losing-nsw-bed-rate-battle-20241201-p5kuwe ]