This is the lowest annual rise in 4 years and is half a percentage point lower than last year's increase. The increases were actually lower than the increased cost of providing health services from doctors and hospital. Officials say that this rise will not provoke an exodus from the industry.
According to Peter Dutton, Federal Opposition's health spokesman, people will downgrade their health insurance as a result of this announcement. The rise comes on the heels of the Government's push to cut the number of people who are eligible for the private health insurance rebate, and some people will be hit twice.