The upcoming hike in premiums for health insurance is not going to go well with consumers. The health insurance industry has released its figures recently and costs are up 10%.  
 
The expected increase in costs is due to the increase in the number of claims and the surge in the cost of each claim. The cost of kidney surgery is now $10,000, a $1,500 increase and Southern Cross has said the cost of knee operation is expected to be more than $14,000.  
 
The demand for many general surgeries and operations under the skin has seen a steady increase in the past decade. Southern Cross has seen both a demand surge and a price surge but they are limiting consumers depending on their providers.
 
Southern Cross, the country's largest health insurer, says the public needs a reduction in taxes. Southern Cross Health Society’s CEO Dr Ian McPherson, says the industry is paying 96 cents for every $1 consumers pay in premiums as claims.
 
The CEO believe that unless the government takes the required steps the industry will fall as the prices will keep increasing becoming unaffordable and providing tax benefits for the poor and the elderly will give them the opportunity to keep running.
 
Tony Ryall the Health Minister said the Senate was planning to offer rebates last election but did not pass the bill on account of the financial crisis in the economy.