Australian Lefty on Politics, Governance, Science and Info Management

Posts Tagged ‘health funds’

Health funds admit they should not exist

Posted by Dave Bath on 2011-04-03

It’s good when an advertiser tells the unvarnished truth, sad when you realize that neither people mor government are prepared to join the dots… and the advertisers know this.

The ad in question was for a health fund.  The argument was "use us because we pay out 96 percent of what we collect in premiums, the average health fund returns 91 percent."

In other words, if the 5% difference makes it worthwhile switching to them from a more wasteful place to put your month, the extra 4% from putting your premium under the mattress is even more attractive, and you’d do much better putting it in a bank for another couple of percent.

In other words, they admit the nation is better off without a health fund, or that the best health fund is a bank, where you are guaranteed a few per cent more than you put in.

It would be bad enough if only stupid individuals were being sucked in, but that governments subsidize premiums, knowing they are throwing taxpayer funds down the drain – well, that is stupid, if not corrupt.

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