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PRIME MINISTER
FOR PRESS 8 JUNE 1976
JOINT STATEMENT BY THE PRIME MINISTER AND THE
MINISTER FOR HEALTH--MEDIBANK ( PRIVATE INSURANCE)
The Prime Minister and the Minister for Health today
, announced the Cabinet decision that Medibank will now
be permitted to offer intermediate and private ward cover
for those people who wish to take out total cover with
Medibank. This means that in the intermediate and private ward area
Medibank will be able to compete on equal terms with
private funds.
The Prime Minister and the Minister for Health forecast
several days ago that Medibank could enter the private
health insurance field to give every Australia a positive
choice of remaining in Medibank either for standard,
intermediate or private ward accommodation.
The Government has decided to give authority to Medibank
so that it can operate as a private insurer in fair
competition with other registered organisations.
Medibank ( Private Insurance) operations will be managed
on a financially viable and separate basis from its
other operaiecins.
While it is planned that Medibank ( Private Insurance) will
make use of existing administrative facilities these will
be costed and appropriate means will be established to
separate these costs. Separate accounts under statutory
requirements, will be kept for these operations of
Medibank. Medibank ( Private Insurance) will be required to comply fully
with the provisions of a National Health Act including
details of registration.
' The Government is : determined to ensure that Medibank remains
available to every Australian. This will enable full-and
open competition between Medibank and the private funds.
That competition will do much to cut down the total cost
of health care. / 2
The Government by this measure, is giving the widest
possible area of choice and nobody is being forced
out of Medibank.
As a registered organisation, Medibank ( Private
Insurance) will operate basic medical and hospital
benefit tables. These tables will provide private
and intermediate ward cover in public and private
. hospitals and will exempt people from the 2 levy payment. 0 0