Potential in Medibank sale: Greens
"It would be fair to say that if the sale was to go ahead, we would absolutely want to see that money invested into public healthcare," Greens health spokesman Richard Di Natale said.
Senator Di Natale said Medibank's hearty dividends to the federal government strengthened the case to hold on to the business, which made a $126.6 million profit last financial year, down 57 per cent.
Since it converted to "for-profit" status in 2009, Medibank has paid hundreds of millions of dollars in dividends to its owner, including "special" dividends.
Labor said recently it had no plans to privatise Medibank, but the head of listed health insurer NIB, Mark Fitzgibbon, has long called for a sale.
Senator Di Natale also cast doubt on whether a Coalition government would reverse the means testing of private health insurance, saying an Abbott-led government might be tempted
to maintain the revenue once
in power.
"They've made so many promises that they're not going to be able to keep that I suspect that some of the talk is probably very cheap," he said.
"So if they don't get around to it, it's not that they don't think it's a bad policy - it's because they're going to save pennies every way they can."
He said that although the Greens traditionally believed the sale of public assets "rarely produces a dividend for ordinary citizens", private health insurance was a special case.
"You really have to ask the question: Should the government have a role in the private health insurance industry and would that money be better invested in the public healthcare sector?"
Frequently Asked Questions about this Article…
The Greens say they could be swayed to back the privatisation of Medibank Private, but remain cautious and would not necessarily give full support. Greens health spokesman Richard Di Natale has said any sale would need clear public‑interest conditions, such as directing proceeds into the public health system.
The Greens want any proceeds from a Medibank sale to be invested into public healthcare. Richard Di Natale said it would be fair to expect that money to be put back into the public health system if a sale goes ahead.
The article notes Medibank made a $126.6 million profit in the last financial year, down 57% year‑on‑year. Since converting to for‑profit status in 2009, Medibank has paid hundreds of millions of dollars in dividends to its owner, including so‑called 'special' dividends.
According to the article, Labor recently said it had no plans to privatise Medibank.
Yes. The head of listed health insurer NIB, Mark Fitzgibbon, has long called for a sale of Medibank, the article reports.
Yes. Senator Di Natale cast doubt on whether a Coalition government would reverse means testing of private health insurance, suggesting an Abbott‑led government might be tempted to keep the revenue once in power and that some political promises may be inexpensive talk rather than action.
The Greens traditionally believe selling public assets rarely benefits ordinary citizens, but they view private health insurance differently. Di Natale says you have to ask whether the government should have a role in the private health insurance industry and whether sale proceeds would be better invested in public healthcare, making it a special case.
The article highlights a core question raised by the Greens: should the government have a role in the private health insurance industry, and would the money from any sale be better invested in the public healthcare sector?
Call 1300 880 160
Start a chat
Schedule a call
