Premiums won't rise, Cormann says

Finance Minister Mathias Cormann has dismissed claims from doctors that the sale of insurer Medibank Private will push up health premiums, saying the company operates in a highly competitive market.

The Australian Medical Association (AMA) has reiterated fears that the privatisation will push up insurance costs, but Senator Cormann said the ownership of Medibank Private "has got no relevance whatsoever" to premiums.

He said the government-owned insurer operated in a market of 34 health funds.

"Whether Medibank Private is in public or private ownership will not have any impact on premiums whatsoever," Senator Cormann told ABC radio on Thursday.

"If they are sold they will still be operating in a highly competitive, highly regulated market where premiums will not be impacted by that decision."

The government came under fire on Wednesday after it was revealed it had hired spin doctors to help promote the $4 billion-plus sale, before receiving a scoping study on its viability.

Newgate Communications has reportedly been hired at a cost of $2000 a day, leading Labor to claim a decision on the privatisation has already been made, and accuse the government of wasting taxpayers' money.