NIB, Medibank to feel squeeze as members opt out

Goldman Sachs analyst Ashley Dalziell said in a research note released on Tuesday that revenue trends for health insurers would "remain tough" this year.

Goldman Sachs and Citi both downgraded their rating on NIB from neutral to sell on Tuesday, citing the numerous headwinds and its relatively high valuation of 24 times forecast earnings. "We wonder if the relief rally following the election result has gone too far," said Citi analyst Nigel Pittaway, who noted NIB shares were trading at a high multiple "despite growth being constrained by industry conditions".Mr Pittaway forecast that NIB's premiums would increase by 2.

Those savings would likely have been identified ahead of the election, which Labor was expected to win.

pwhatch A private only health insurance system in Australia isn't financially viable and the current system is struggling

pwhatch It's a total scam. I pay a random company $1,100/year to save a little more in tax. Why not just increase my tax $500/y. Win for me and the government

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