Australian health insurers are being urged to deliver better value for money after making huge profits during the pandemic, as well as increasing spending on executives’ salaries.
A report from the Australian Medical Association found some insurers were paying about 15 percent of their premium income to management expenses, significantly more than the industry average of 11.7 per cent.
Insurers’ profits jumped due to cancelled elective surgeries and a rise in the number of Australians with hospital cover, according to the peak body for doctors.
About 235,000 additional people signed up for health coverage since June 2021, meaning 45.2 percent of the population now have insurance.
