Private Health Insurance Pain as Households Struggle to Cope With Rises

Private health insurance pain as households struggle to cope with rises

Private health insurance premiums are set to rise an average 6.18 per cent on April 1.

HALF of Australia’s private health insurance customers are thinking about downgrading their cover in an effort to combat soaring premiums.

Ahead of an average health insurance rise of 6.18 per cent on April 1, new research by consumer network One Big Switch has found that two-thirds of households have had trouble paying their bill.

Its survey of 40,000 consumers also found that many people are making sacrifices to stay insured, including reducing their level of cover, increasing their excess and spending less elsewhere.

One Big Switch spokesman Joel Gibson said this year’s premium hike was the second consecutive annual bill rise of about $300.

“Health insurance is one of those bills that really gets under people’s skin,” he said.

“Sooner or later, something’s got to give, or thousands of consumers will dump their private cover and fall back on the public health system.”


Consumers who \dump their private cover will fall back on the public health system. Picture: Publishing Ingram.

Mr Gibson said some people were trading away certain treatments, such as heart or eye treatments.

MORE: The government’s health fund rebate slashed costing families $120 a yea

He cautioned about quitting private health cover outright. “There’s the danger that if you drop it altogether, because you can’t afford it, it becomes harder to get back in if you are over 30.”

The Federal Government’s Lifetime Health Cover rules penalise people with a loading of 2 per cent for every year after age 30 that they don’t have hospital cover, up to a maximum 70 per cent loading. There are also penalty taxes for middle and higher income earners who don’t take out hospital cover.

“Australians want the peace of mind that comes with private health insurance, but many are now being priced out of the market,” Mr Gibson said.

Medibank chief customer officer Laz Cotsios said customers should review their health insurance policies at least annually.

“A cover review allows people to consider their situation and check that their cover still suits them,” he said.




Medibank branch, Adelaide Street, Brisbane. Medibank was floated on the stock market today. Customers discuss their impressions of the float. Photo: Claudia BaxterALSO: Pay doctors more but only when they provide the right care say health funds

“Don’t forget that you can prepay your health insurance to lock in your current premium.”

More than 20,000 people have signed a One Big Switch petition calling for more affordable private health insurance, and the consumer network has joined forces with News Corp Australia in a campaign to use people power to unlock a group discount offer from a health fund.

RELATED: Mooted private health insurance ‘excess’ rise could double the cost of an operation

Last week was the first week of the four-week Big Health Insurance Switch campaign and more than 45,000 people signed up. Joining is free and there is no obligation to accept any offer that is presented.




The Big Health Insurance Switch

For more details visit moneysaverhq.com.au. One Big Switch and News Corp Australia earn a commission on any offers that are accepted.

Perth House Prices Fell 2.3 percent in February

House values across Perth fell by more than 2 per cent through February despite the cut in mortgage interest rates.

Figures
from RP Data-CoreLogic showed values in Perth dropped by 2.3 per cent
to be 2.9 per cent down since the start of the year.



The
fall was not confined to houses. The value of units dropped by 0.4 per
cent in the month to be off by 0.9 per cent this year.



Over
the past 12 months house value sin Perth are up by just 0.7 per cent,
well short of inflation, while unit values have fallen in nominal value
by 1.9 per cent.



Only Hobart has a softer house market than Perth with values on the Apple Isle up by 0.6 per cent.



The fall came despite the Reserve Bank slicing official interest
rates to their lowest level on record. Banks cut their mortgage rates in
line with the Reserve.



Nationally, prices edged up
by a modest 0.3 per cent but almost all of the growth was in Sydney
where house values lifted by 1.6 per cent.



Over the past year, Sydney values have climbed by 14.7 per cent.



RP’s head of research Tim Lawless said there had been step down in growth over the past three months.

He said outside of Sydney, lower interest rates were failing to drive up values.



“We might not see the lower interest rate environment stimulate the housing market as much as it has in the past,” he said.



“Weaker
jobs growth, higher unemployment, declining affordability, low rental
yields and political uncertainty are all factors that could dent
consumer confidence and provide some counter balance to the rate cuts
and quell any additional market exuberance.”



The Reserve Bank board meets tomorrow with markets putting the chance of a rate cut at 50-50

Australian Dollar Tumbles on RBA Cash Rate Cut

The Australian dollar tumbled by more than one and a half cents on the Reserve Bank of Australia's decision to cut the cash rate to a historic new low.

The local currency hit a fresh five-and-a-half year low to US76.57¢ on Tuesday afternoon, down from US78.16¢ just before the release. The reaction followed the central bank's decision to cut the cash rate by 25 basis points to 2.25 per cent after 18 months of holding the rate steady.

Despite the sharp fall in the Aussie dollar – nearly 20 per cent in the past six months – the Reserve Bank said the exchange rate remained high. 

"The Australian dollar has declined noticeably against a rising US dollar over recent months, though less so against a basket of currencies," the Reserve Bank said in its statement on monetary policy.

"It remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy."

Market forecasts the exchange rate to continue to fall. On Commonwealth Bank of Australia figures, the local currency is expected to fall towards 73¢ by June this year, but the bank's senior currency strategist Elias Haddad said there was a risk the Australian dollar will fall even further and the bank will be revising its forecast.

"We expect a further downside movement here, not just against the US dollar but also on the crosses, due to narrowing interest rate, falling commodity prices and still unimpressive Chinese economic data," Mr Haddad said.

National Australia Bank will also be revising its forecast in light of Tuesday's tumble. Back in November last year the bank forecast the Australian dollar to hit US78¢ by the end of 2015. NAB global co-head of FX strategy Ray Attrill said the bank will be reviewing its forecast after the central bank releases its statement on monetary policy on Friday.

"The market already priced in the expectations of a rate cut, but the currency still lost. It shows the market is still prepared to sell," Mr Attrill said.

In an exclusive interview with The Australian Financial Review in December last year, Reserve Bank governor Glenn Stevens said an appropriate level for the Australian dollar would be US75¢.

Mr Attrill said the currency could be heading towards the US70¢ mark, given the fall in the commodity prices since December.

"You can argue, if US75¢ was about the right level in mid-December, and taking into account what's happened with commodity prices generally, maybe US70¢ is more appropriate," he said.

A batch of data fuelled RBA jitters earlier on Tuesday. The Australian dollar jumped by more than third of a cent to US78.30¢ after slightly better-than-expected economic data was released: building approvals slipped 3.3 per cent in December (better than the predictions of a 5 per cent slide) and trade deficit narrowed to $436 million in December, beating expectation of more than $850 million.

#AustralianDollar #RBA #interestrates

- See more at: http://investmentaustralia.blogspot.com.au/2015/02/australian-dollar-tumbles-on-rba-cash.html#sthash.pgGyIY5X.dpuf

New Car Sales Hit Record High - Australia Car News

Sales of new motor vehicles jumped by the most in five months in August to reach their highest on record, a sign consumers have the confidence to splash out on big ticket items.

Government figures out this morning show new vehicle sales rose by a seasonally adjusted 3.6 per cent in August to 93,379, following a revised 1.1 per cent decline in July. Sales were up 6.4 per cent compared with August last year.

Sales of sports utility vehicles extended their meteoric run with an increase of 4.3 per cent to a fresh all-time high of 26,452. Sales of passenger vehicles rose 4.7 per cent, while sales of other vehicles, including trucks, edged up 0.4 per cent after a very strong result in July.

The robust vehicle numbers contrast with softness seen in retail sales for July and suggest consumer spending is not as weak as some fear.


Industry data out earlier in the month showed Toyota retained first place in the sales ladder with 19.2 per cent of the market in August.

Holden held second spot with 12.0 per cent. Hyundai and Ford tied with 8.3 per cent, while Mazda took 8.2 per cent.

Chinese Cars Made With Asbestos Expected To Be Recalled

China is poised to surpass other leading, industrialized nations in car manufacturing with inexpensive cars. Instead of taking decades to adapt and revolutionize car manufacturing, the Chinese industry has just taken a few short years to catch up with the rest of the world. However, this incredible transformation has come at a cost.

In recent months, many Chinese car brands have come under fire for poor safety and quality in the rush to become a viable car alternative on the international market.

Nearly 25,000 inexpensive Chinese cars from two car manufacturing companies Great Wall and Chery are expected to be recalled in Australia after it was discovered that asbestos was used in gaskets. Many industrialized nations like Australia have banned asbestos in mining and manufacturing as well as have banned the importation and exportation of asbestos.

After the discovery of the asbestos gaskets, production at both companies stopped. Great Wall and Chery are currently researching potential replacement materials for the toxic gaskets, but initially said that car production did not include asbestos.

As of Tuesday, the Australian Competition and Consumer Commission is debating whether to issue a recall of the 25,000 cars imported into the country. A final recall decision is expected later this week. Ateco Automotive, the company in charge of importation of both Chinese brands, initially ruled that the asbestos gaskets pose a “negligible” health threat for drivers and passengers.

Up until it was banned in most countries, asbestos was a common material used in car manufacturing. Besides gaskets, asbestos was used in other automotive parts like  brakes, brake components, clutch linings, disc and drum brakes, and transmission plates.
A naturally occurring set of minerals, asbestos was widely used in a variety of products up until the late 1990s and early 2000s in many industrialized nations. After it was discovered that asbestos is a carcinogen akin to cigarette smoke, most countries banned the material.

Exposure to asbestos is the leading cause of a rare form of cancer called mesothelioma. Affecting the delicate protective lining of the lungs, heart or abdominal cavity, mesothelioma can take upwards of several decades to present symptoms. Once in play, mesothelioma is a fast moving disease without a cure.

Ford Stand-Down of 1800 Draws Nearer

A temporary stand-down of 1800 Victorian workers at Ford is increasingly likely as state and federal governments join in a bid to resolve the crisis involving a financially troubled car parts maker.

Ford says the stand-down for an estimated one or two days from Thursday would be the worst-case scenario if the dispute involving supplier CMI Industrial drags on.

About 80 workers at CMI's Campbellfield factory have been locked out since last Friday after the landlord changed the locks in a dispute over rent payment, believed to be around $150,000.

Federal Workplace Minister Bill Shorten said he's been in talks with the Victorian government over the appointment of an administrator to CMI.

"We're looking to have confirmation of a particular company who's been appointed as voluntary administrator and I'll be in touch with them," Mr Shorten said.

Ford spokeswoman Sinead Phipps said the company hoped the situation would be resolved as soon as possible.

"If it's not, we would temporarily stand down at the end of Thursday," Ms Phipps said.

She said Ford would work with the union to bring forward scheduled days off to ensure employees at its Broadmeadows and Geelong plants were paid in the event of a stand-down.

Its other suppliers would also be affected if the stand-down went ahead, but it was difficult to quantify the impact.
Victorian Premier Ted Baillieu said the government was willing to help to restructure CMI.
"Obviously that has to take place. It's one of the key suppliers to Ford and other automotive manufacturers," he told reporters.

Manufacturing minister Richard Dalla-Riva said the government had been in talks with CMI Industrial and other key parties about the company's financial difficulties.

A spokeswoman for the minister said she could not comment on details of the talks.
CMI Industrial workers met outside their factory at 7am (AEST) on Tuesday, anxious to learn of the future of their jobs. The landlord did not attend and the factory remained locked, and union officials could tell workers little as talks between CMI and Ford continued.

AMWU Victorian Secretary Steve Dargavel said he hoped the state government would resolve the situation.
"If they fix it that's great, if they don't, Ford gets stood down and their supply chain potentially gets affected too, so that would be terrible," Mr Dargavel said.

He said many more workers who supply Ford will be affected if Ford stands down workers.
"There's a lot at stake here to get it sorted quickly."

Federal opposition industry spokeswoman Sophie Mirabella said the turmoil surrounding CMI Industries and Ford was the latest in a turbulent time for the automotive industry, which would only worsen once the government's carbon tax took effect.

"At a time when the car industry is already facing serious challenges, our industries can ill afford yet another blow," she said in a statement.

Toyota Hires Extra Security As Axe Falls On 350 Jobs

Car maker Toyota has hired extra security staff for its factory in Melbourne's south west as the company prepares to sack 350 workers.

Toyota blames the job losses at its Altona assembly plant on the downturn in production levels and the strength of the Australian dollar.

Alison Caldwell reports.

ALISON CALDWELL: Toyota foreshadowed the job cuts in January, blaming the high Australian dollar for falling export sales.

Since then it's assessed more than 3,000 employees at its Altona assembly plant, testing them on workplace behaviour and skills.

The people with the lowest ratings will be forced to leave today and tomorrow - that's around 10 per cent of the workforce or 350 employees.

Paul Defelice is the assistant state secretary of the Australian Manufacturing Workers Union.

PAUL DEFELICE: They'd be very anxious because there is a number of people that will be told today that they are surplus to requirement. So until the morning passes, there's going to be a lot of anxious people.

ALISON CALDWELL: This was announced by Toyota back in January. What's been going on in the discussions with the union since then?

PAUL DEFELICE: There's been a whole host of meetings, I suppose on a weekly basis, to actually look at an appropriate and fair and transparent selection criteria, and out placement services and also the quantum of the final package for people to exit on.

ALISON CALDWELL: Now they've got security guards out there today to help people leave the plant. Is that an unusual situation?

PAUL DEFELICE: It is an unusual situation because I don't think in my history this has transpired. It's always been purely voluntary so it's been a pretty sort of amicable departure between the parties. So I don't know how people are going to take it when they get told that they're no longer required so I presume that's why the security guards are there.

ALISON CALDWELL: Do you know how they're working out who's going and who's not?

PAUL DEFELICE: Look it'll be based on skills, obviously, it'll be based on a whole host of other things - probably absenteeism will be one of them. So they are the main criteria, I suppose.

ALISON CALDWELL: Absenteeism meaning people who haven't been turning up for work?

PAUL DEFELICE: Excess to their entitled quota.

ALISON CALDWELL: Is that is for the time being at least? I mean, this number was expected but…

PAUL DEFELICE: It's not anticipated for the foreseeable future there's going to be any more because there's actually been a small increase in volume, I think approximately 3,900 - three thousand nine hundred - over the next three or four months. So should be right for three or four months.

ALISON CALDWELL: A spokeswoman for Toyota says the union requested the extra security to quote "make sure everything goes smoothly".

She says Toyota believes the redundancy packages, negotiated with Fair Work Australia, are generous.

Included in the 350 job losses are 84 voluntary redundancies.