Rises defended: Mr Savvides says the rate of premium growth is slowing.
Last Update: Sunday, October 8, 2006. 11:34am (AEST)

Medibank Private defends premium rises

Medibank Private's managing director has defended increases to insurance premiums after it was revealed the company's profit rose 53 per cent in the past year.

Earlier this week Medibank Private announced a profit of $200 million.

The insurer has raised premiums by 6 per cent this year - twice the rate of inflation.

But George Savvides says Medibank Private is reducing the rate at which premiums are growing.

"The healthcare landscape is an increasing cost landscape and our job this year - and has been in the past - is to contain the growth rate of our benefit outlay costs, and we've done that this year," he said.

"A key part of that has obviously gone back to members through reduced premium growth, and that will continue next year.

"Some of it has come through to the bottom line in our profit result."

The Federal Government has delayed the privatisation of the insurer until 2008.