As per the figures released today, due to the costs associated with the elective surgery, a 10% hike in the claims have been stomached by the health insurers in this year ending June. In the year, a claim of $797 million was shelled out by the insurers; up from $72 million in June 2009, as said by the Health Funds Association (HFANZ), with 80% of value related to elective surgery or non-emergency surgery and associated costs.

HFANZ Executive Director Roger Styles said, “Growth in claims costs has been running at a high level over recent years due to increased demand, expansion of services funded, and medical inflation. Cost-shifting from the public sector has also contributed”.

Even though, the economic conditions aren’t going that good, yet there are only a few people left with no cover of the health insurance. From the last five years, the claims cost have hiked by an average of 9% year over year. Also, the premium income has boosted by 8.5% to $918m, in comparison to the yearly increase of 5% from June 2009.

The rise is evident from the fact that in March quarter, the health insurance had earned $231m in premiums, and this figure elevated to $236m in premiums in the June quarter.