Medibank to combat Labor’s premium cap with more focus on ‘in-home services’
With the Coalition well behind in the latest Newspoll results, a Labor government is a very real possibility.
Labor has promised, if they win government, to cap private health care premium increases at two per cent.
CEO of Medibank Private Craig Drummond tells Ross Greenwood Labor’s policy “makes sense” but dampening premium increases needs to be “sustainable”.
“To cap private health costs at two per cent for the next couple of years is going to be extremely challenging,” he says.
“One of the things we’re doing is we’re continuing to build our in-home services.”
Mr Drummond says the company is looking to provide services, like rehabilitation services, in people’s homes rather than in hospitals if doctors give the okay.
“From a system point of view, and what it means about trying to make premiums sustainable and health care sustainable, that is being delivered at one-third of the cost of the inpatient service.”
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When it comes to the company’s own cost savings, Mr Drummond says their management expenses have fallen by over $20 million and they’re expected to be slashed again in the coming year.