Mike's Minute: We seem to be getting sicker and sicker

There are more people than ever with private medical insurance. 

In a so-called “cost of living crisis”, over 15,000 more people joined Southern Cross last year – and that’s just one company. They now have almost a million customers. 

Having delt with my company recently over a series of issues, I can inform you I pay over $4000 a year and I have never made a claim in my life. 

So far, they are winning. 

But I know a person who had an operation the other day that had a value attached of $40 thousand. It wasn’t a major operation, the surgeon did seven of them that day.  

Seven operations at $40 thousand, that’s a lot of business for one surgeon in one day, in one clinic. Which would explain why Southern Cross was paying out $6 million a day last year.  

Think about it – $6 million for every business day last year 

My obvious question is what's wrong with us? Half of members made a claim last year – there were over 3 million actual claims. How is that possible? 

As a result of all these claims Southern Cross ran a deficit. They also had to deal with increased cost of claims.  

That’s 50%. That 50% by the way, compares to 33% in 2019. So, in the past handful of years there has been an explosion in medical claims. Why? 

Knees up 17%, colonoscopy up 17%, hips up 11% - is that age? Are we all just literally falling apart? 

The simple reality is this can't continue. Well it can, but at a price, and is it any surprise the price is going up? 

Part of the reason the insurance numbers getting up I have no doubt is because the public system is under pressure. 

So a public system not working well on anything outside emergency, and the private system under pressure from ever growing numbers of claims, is it possible we are not well as a country?  

How come so many people are actively engaged with the health system? Are we worse than Australia, for example, and if so, why? 

How long can a private model go for whereby the prices go up and up, along with the claims? We seemingly getting sicker and sicker – why?  

Is this not the cold hard truth that when they say health is a bottomless pit, it’s true? Because these numbers show it is. 

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Episode Transcript

Speaker 1 (00:00):
Now there are. I'm here to tell you more people
than ever with private medical insurance. Let me give you
some numbers, and the so called costs will be in crisis.
Over fifteen thousand more people joined Southern Cross last year.
That's just one company. They've got almost a million customers now.
So having dealt with my company, which isn't Southern Cross
recently over a series of issues, I can inform you

(00:21):
I pay over four thousand dollars a year and I've
never made a claim in my life. So so far
they're winning. But I know a person who had an
OP the other day that had a value attached to it.
A forty thousand dollars. Wasn't a big op, wasn't a
major op. Forty thousand dollars. The surgeon did seven of
them that day, seven times forty thousand dollars operators. Seven
ops had forty thousand dollars. That's a lot of business

(00:42):
for just one surgeon, one day, one clinic, which would
explain why Southern Cross are paying out six million dollars
a day last year. Think about that, six million dollars
for every business day last year. So my obvious question
is what's wrong with us? I mean half of members
made a claim. Last year there were over three million
actual claims. How is that possible? As a result of

(01:04):
all these claims, Southern Cross ran a deficit, no kidding.
They also had to deal with increased costs of claims.
That's fifty percent, the thirty percent of them. By the way,
that's gone up from thirty three percent. Used to be
a third of people making a claim. Now it's fifty percent.
That was in twenty nineteen. So in the past handful
of years there's been an explosion in medical claims. Why
Knees are up seventeen percent, colonoscopes are up seventeen percent,

(01:25):
hips are up eleven percent. I mean is that age?
Are we all that now? Just literally falling apart? The
simple reality is this can't continue. Well, I mean it can,
but at a price. And is it any surprise your
price is going up. Part of the reason the numbers
are getting in it's going up in terms of insurance,
I've got no doubt, is because the public system is
under pressure. Who would want to deal with the public
system if you've got the will with all not to

(01:47):
so a public system not working well on anything outside
of emergencies, and the private system under pressure from ever
growing numbers of claims. Is it possible we are not
well as a country? How come so many people are
actively engaged with the health system. Are we worse than
in Australia for example? And if so, why how long
can a private model go for whereby the prices just
go up and up and up and up. Along with

(02:07):
the claims, we seemingly are getting sicker and sicker. Why
is this not the cold hard truth that when they
say health is a bottomless pit, it is in fact true,
because these numbers show it is. For more from the
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