Task 1 Insurance Reform
Task 1 Insurance Reform
Task 1 Insurance Reform
The federal Government’s private health insurance reform package is a mixed bag of
policy tricks. The reform package, due to be introduced in April next year will only
deepen the divide between Australia’s private health insurance haves and have-nots.
The concept of “broader health cover” will also include access to preventative care
treatments for policy holders. Preventative care encourages people to stay well rather
than just treating illness when it develops. It can involve getting regular check-ups
and making positive lifestyle changes, such as regular exercise and an appropriate
balanced diet.
Despite the bells and whistles included in the new package, private health insurance is
just not an option for many Australians. They simply cannot afford it. Private health
insurance can cost the average cash-strapped family between 3 and 4 per cent of their
annual income. For single parent families, the picture is bleaker. Australian Bureau of
Statistics figures show that 54 per cent of this group receive government benefits,
leaving them with far less discretionary spending power. For this group, affording
private health insurance is pier in the sky. Future premium increases will squeeze out
most struggling families, particularly those on lower incomes.
A worrying precedent has already been set. Over the last five years, premiums have
increased by 40.9 per cent. That’s a rise equivalent to double the rate of inflation each
year since 2001. Given the rising cost of premiums, it is no wonder that consumers on
higher incomes are more likely to take out private cover.
While Choice supports consumers’ right to choose between the private and the public
sector, Australia prides itself on being an egalitarian nation. The idea of a fair go still
forms the foundation of our society. Yet here we have a situation where all taxpayers
are funding a system which mainly benefits those on higher incomes who can afford
to pay for better services. All taxpayers fund the 30 percent private health insurance
rebate at a cost of $3 billion a year. Yet the 57 per cent of people without insurance
are being left out in the cold. In addition, taxpayers are also footing the bill for the
marketing of private health insurance.
In his last speech, Treasurer Peter Costello said that the Government would spend
$55million over the next four years “to increase consumer awareness of the incentives
and benefits associated with private health insurance”.
So, what is the solution? How the public system is funded is critical. The current
commonwealth/state funding model of public hospitals is inefficient and wastes
resources. The health system is also being crippled by workforce shortages, especially
in rural areas. Australia is in dire need of not just doctors and nurses, but also allied
health professionals such as physiotherapists, dieticians and podiatrists.
Understanding meaning from context: Try to work out the meaning of the following
expressions from the article. Use a dictionary and the internet to find out the
meaning.
1. mixed bag of policy tricks
2. deepen the divide
3. Despite the bells and whistles of the package
4. cash strapped family
5. a bleak picture
6. affording health insurance is pie in the sky
7. squeeze out
8. egalitarian nation
9. to foot the bill
10. to be left out in the cold
Insurance Reform Answer Sheet
Question 1
a) Incorrect: Untrue
b) Incorrect: Untrue
c) Incorrect: Untrue
d) Correct
Question 2
a) Correct: Yet in the government’s overhaul of the private health sector, only those with private cover will benefit.
The majority of Australians will get left behind.
b) Incorrect
c) Incorrect: …..a cure for arthritis has proved elusive. Elusive is synonym for hard to find
d) Incorrect
Question 3
a) Incorrect
b) Incorrect
c) Correct (best choice)
d) Incorrect
Question 4:
a) Incorrect
b) Incorrect
c) Correct: …. Over the last five years, premiums have increased by 40.9 per cent. That’s a rise equivalent to double
the rate of inflation each year since 2001
d) Incorrect
Question 5
a) Incorrect
b) Correct: All taxpayers fund the 30 percent private health insurance rebate at a cost of $3 billion a year.
c) Incorrect:
d) Incorrect:
Question 6
a) Incorrect: Mentioned: The health system is also being crippled by workforce shortages, especially in rural areas. Australia
is in dire need of not just doctors and nurses, but also allied health professionals such as physiotherapists, dieticians and
podiatrists.
b) Incorrect: Mentioned: The current commonwealth/state funding model of public hospitals is inefficient and wastes
resources.
c) Incorrect Mentioned: The current commonwealth/state funding model of public hospitals is inefficient and wastes
resources.
d) Correct: Not mentioned