Medibank privatisation Essay Example
Executive summary
In April 2006 the Commonwealth Government announced its intention to sell Medibank Private. The reasons given for the sale include that there is no good public policy reason for the government to own a health fund, and that a privately-owned fund would be able to be more efficient, with the possibility that this may lead to lower premiums for members.
This Research Brief examines the historical development of Medibank Private, and the questions of who owns or enjoys other rights in the fund, and whether there are public policy reasons for the government to maintain the current Medibank Private ownership structure.
RECOMMENDATION
That the status quo with respect to the public ownership of Medibank is maintained
.INTRODUCTION
Medibank Private began its operations on 1 October 1976. This followed the announcement by the Fraser government on 8 June 1976 that the Health Insurance Commission (HIC) would be authorised to offer private medical and hospital insurance in all states in competition with existing registered health funds. The Health Insurance Commission (HIC), as the operator of Medibank Private, would assume the same rights and obligations under the National Health Act 1953 as other registered health funds.
KEY ISSUES
There have been many issues raised in the debates over the possible sale of Medibank, since the possibility of sale was raised during the late 1990’s and the government announced its intentions to do so early 2006. The key issues are discussed below.
Ownership of Medibank
It has been observed that some policy holders are of the view that Medibank is a unique public entity given that a significant portion of its financial reserves are derived from people who purchase policies. A number of opponents of the sale have questioned whether Medibank is the Government's to sell. Others have argued Medibank members possess rights which may stand in the way of the sale or entitle them to compensation in some form. These
In April 2006 the Commonwealth Government announced its intention to sell Medibank Private. The reasons given for the sale include that there is no good public policy reason for the government to own a health fund, and that a privately-owned fund would be able to be more efficient, with the possibility that this may lead to lower premiums for members.
This Research Brief examines the historical development of Medibank Private, and the questions of who owns or enjoys other rights in the fund, and whether there are public policy reasons for the government to maintain the current Medibank Private ownership structure.
RECOMMENDATION
That the status quo with respect to the public ownership of Medibank is maintained
.INTRODUCTION
Medibank Private began its operations on 1 October 1976. This followed the announcement by the Fraser government on 8 June 1976 that the Health Insurance Commission (HIC) would be authorised to offer private medical and hospital insurance in all states in competition with existing registered health funds. The Health Insurance Commission (HIC), as the operator of Medibank Private, would assume the same rights and obligations under the National Health Act 1953 as other registered health funds.
KEY ISSUES
There have been many issues raised in the debates over the possible sale of Medibank, since the possibility of sale was raised during the late 1990’s and the government announced its intentions to do so early 2006. The key issues are discussed below.
Ownership of Medibank
It has been observed that some policy holders are of the view that Medibank is a unique public entity given that a significant portion of its financial reserves are derived from people who purchase policies. A number of opponents of the sale have questioned whether Medibank is the Government's to sell. Others have argued Medibank members possess rights which may stand in the way of the sale or entitle them to compensation in some form. These