Messenger All Australian residents have access to Medicare, so why do half the population also decide to take out private health insurance? And what do they get out of it?
Messenger At first sight it is surprising that neither the government nor the opposition, both seeking budgetary savings, is proposing to sell Medibank Private.
The budgetary case for a sale is an attractive deal. In the election campaign, the Coalition was firmly committed to selling Medibank Private.
In pure financial theory, the decision whether or not to sell a profitable enterprise should be a neutral one, for such a sale deprives the shareholder of an ongoing dividend stream. But public finance — particularly in an election year — is also guided by the immediate budget impact and projections, which go out only for three subsequent years.
The economic case also makes sense. In economic terms, Abbott and Di Natale are right. While there are many situations where governments should be active players in markets, when a checklist of those reasons is run on Medibank Private, there is no reason why it should remain in government hands.
It is simply one of 35 competing health insurers. Indeed, the idea that a government insurer could bring some discipline to the other funds was one of the two main reasons the Fraser government established Medibank Private in But that form of intervention has given way to national competition policy, and in any case, the government has the strong regulatory mechanism of capping health insurance premium increases.
The political problem is opposition to privatisation. There is strong community opposition to privatisation. That opposition was one of the factors leading to the defeat of the Keneally Government in New South Wales and the Bligh government in Queensland.
Public opinion polling shows strong resistance to privatisation — even a majority of Coalition voters are opposed. These considerations provide strong cases for ongoing public ownership of roads, power and water providers, public transport and many other utilities. There are similarly strong arguments for the government to be an initial monopoly investor in networks such as the National Broadband Network and high-speed rail, although these may pass to private ownership once established.
But those arguments, while familiar to economists, are not in our public discourse.
Rather, the case for privatisation has been based on simplistic ideas about reducing public debt and on bringing the supposed efficiency of the private sector to improve the performance of overstaffed or undercapitalised government business enterprises — without any explanation why governments cannot reform their own enterprises.
And they know that there is something wrong in selling assets, particularly those assets they own collectively through their governments, to finance current outlays.Market Limits in Health Reform This volume explores the deep-rooted tensions between publicly funded health care systems and the dynamics of markets in the delivery of privately financed health care.
The Whitlam Government sought to make all education in Australia, from junior to senior level, free and open to all. Whitlam believed that a students merit is the factor that should benefit for the communities vast financial commitment to tertiary education rather than the wealth of parents.
Essay Help on “Should the Australian Government privatize Medibank”? By Assignment Task May 29, Essay Help assignment help, Australia, Australian Government privatise Medibank, essay writing help, Medibank, UK, USA. Essay Topic: Should the Australian Government privatise Medibank?
Medibank is one of the government . Should the Australian Government Privatize Medibank? Essay - Medibank is Australia’s largest private healthcare insurer and one of the leading service providers created by the Australian Government in Should the Australian Government Privatise Medibank?
Essay - The Medibank Australia was founded by the Australian government in , as the Medibank is a . Australian government should have not carried out the privatization of Medibank.
It is difficult to find compelling reasons to privatize a profit making health insurer which was also offering services at quite affordable rate and enabling the government to control the health care system as the Medibank Private is the market leader.