Medibank Private’s chief actuary Andrew Matthews has called for the federal government to subsidise older and sicker Australians’ health insurance and let funds adjust their premiums based on risk, to reverse the decline in membership that has been described as a “death spiral”. Mr Matthews said a relaxation of the rules that prevent insurers from charging higher premiums to those with chronic health conditions – with the government to help fund the difference – would entice the young and healthy with cheaper premiums and increase access to services. Medibank Private’s chief actuary wants funds to be able to adjust premiums based on risk to address declining membership.Credit:Bloomberg “As a country, we want great health outcomes with efficient costs,” he said. The proposal would be budget-neutral if the government diverted some of the $6 billion worth of health insurance premium subsidies it gives Australians based on their incomes. Prime Minister […]