The ethical way to pay out the proceeds of sale would be to distribute them to the people who have paid in, in proportion to their contributions.

Mr Ariel has allowed his - perfectly justified - distaste for the horde of leeches who regularly suck on the teat of IPOs, to colour his views on a perfectly sensible transaction.

He asks first of all, what is the prime objective of the sale. The "prime" objective is for the Government to get out of a business in which it has no legitimacy, as Government ownership adds no value to the process of insurance. Would you expect there to be a government insurer to insure your house, or your car? Same applies to health insurance. It is a commercial venture.

The next objective is to recoup as much money from the process as possible for the taxpayer. Mr Ariel canvasses a series of alternatives to an IPO. If any of these had been likely to produce a greater return, I am reasonably sure one of them would have been chosen, if only because the "financial community" would have taken slab of that process too, and they have only pecuniary motives.

His last question is of course the silliest". "Will the government guaranty [sic] that insurance premiums will not skyrocket?"

This would require the Government to simultaneously "guaranty" that the population will cease to get older, that medical science will stop innovating, and that the public health system will become more capable of serving the needs of the community in a timely and cost-effective fashion.

The sale of Medibank is simply an exercise in common sense.

Think of it this way. If Medibank Private did not already exist, would the government create it, and on what grounds?

The author seems to be of the impression that because it is government owned it isn't motivated by profit.

Medibank Private is a highly profitably government run enterprise. While it is certainly true that the government could use it's dominant position to force premiums lower, well, they haven't done that. Their Gross Margins are at the industry average of 13% and considerably higher than not-for-profits such as HCF.

Medibank Private has been able to use its government ownership to foster a feeling of trust and help it to gain significant market share, yet its prime motivation is profit.

The real tragedy was the loss of the dominant not-for-profit health funds, particularly MBF. Don't worry about Medibank Private, it is just another highly profitable corporation operating in health insurance.

There was a time, when we were the third wealthiest nation on the planet and a creditor one at that, when government function actually included ALL essential service provision, as a core government responsibility!
And the income derived, more than enough to cover all social security obligations, in the compact every government has with the people, their ALLEGED masters!
As others have noted, Medicare Private is not being privatized (selling the people's property to the people) because it is running at a loss, the only cogent reason a good manager has for divesting the portfolio of an asset!
But on highly flawed Ideological grounds alone, and or, to continue to afford to support GOVERNMENT FUNDED PRIVILEGE!?
So if this trend continues, what role is actually left for a government divesting itself of all core responsibilities?
An extraordinarily expensive debating club!?
Vultures that gather around successful enterprises, trying to work out even more complex ways to leech an entirely unearned share?
In living memory, we have at least one example, where the government funded ALL IT'S OPERATIONS out of government owned enterprise, and was so well managed, that the voting population, made sure that they were in the country, each June or July, in order to collect their share of the surplus to needs income!
And finally crueled by the same brand of professional parasites, who mounted a clever campaign that essentially said, the government has no business in business!
And turned the whole thing around, where the public incoming earning shareholder, were cleverly converted to tax payers, and their former healthy incomes, concentrated in fewer and fewer hands! The real goal of so called privatization!?
If we are to outsource and privatize all government service, why not do the same with government itself.
I mean, if all they are is to become an expensive debating club, eyeing off our remain civil liberties, filled to the gunwales with expensive political perks and entitlements!?
What real use are they, except as a parasitical leeches, sponging/taking a living from the makers; or, their so called Masters!?
Their masters?
Bah Humbug! Rhrosty.

Again sob, (3 times in just one week) I have to agree with my arch enemy, JKJ! Ha ha.
However, given dat iz nod going to happen, ve have no ozzer choice, but to uss zup any remaining medicare private entitlements!
Zen opt out, zay in fawor of a cheaper not for profit HFC?
Vich iz vot all health funds vere once, or ven zay vere first created, in order to pay for a wery superior class of public medicine!
Ver goot? Yah?
Rhrosty

The scariest thing about the sale of Medi-bank private is that it is sending us down the road of the American Health care system.

It is another nail in the coffin for medi-care and our public hospital system.

Lessons from America.
https://theconversation.com/creating-a-better-health-system-lessons-from-the-united-states-30266

<IPOs for state owned assets, as commonly conducted, serve little purpose other than to enrich so few at the expense of so many.>

This is so true, and who are the people most likely to make donations to the corrupt Liberal party?