Article News National World a.m. But the good news is that the dividends are already on their way in the form of lower costs next year.
Official figures reveal that health fund management costs jumped sharply last financial year.
Much of this extra expense went on the frantic marketing war to exploit the Howard Government's new-look health insurance July deadline. The Federal Government has promoted increased health insurance numbers as a way of reducing premiums and providing benefits of scale. The council's commissioner, Mr Garry Richardson, said yesterday that the benefits of increased membership were already showing after the first quarter of this year. Management costs had dropped from 13.6 per cent of average industry costs to 11.4 per cent. Mr Richardson defended the funds' splurge on advertising as part of the Government's Lifetime Health Cover campaign, which penalises people who take up health insurance after July.