As expected, private health insurance premiums will rise in the coming weeks, with many Australians fearing the extra costs will prevent them from maintaining private health cover.
Currently, more than 13 million Australians have private health insurance. From 1 April they will have to pay 5–6 per cent more for it, which will no doubt hit most hip pockets quite hard.
And even though, last year, many health fund providers posted record profits, they still feel this current rise could be higher.
Consumer advocates say that although the price hike is lower than many of the health funds had wanted, it still may be more than many consumers can afford, potentially putting private health cover out of reach for many Australians.
“This latest rise is about three times the rate of inflation in the last year. So it is making it harder for people to keep insurance. Many are having to think of dropping it or reducing their cover,” said Consumers Health Forum spokesman Mark Metherell.
Earlier this year, Federal Health Minister Sussan Ley, as part of her investigation into refining the nation’s health system, requested that health funds lower their premium increases, which many did – some by as much as 1.5 per cent.
Factors such as the increasing cost of hospital beds and medical specialists, as well as the increased demand for health services by our ageing population, are being blamed for this new price hike.
Private Healthcare Australia says premiums will keep rising unless the Government reviews pricing regulations on things such as medical devices including hip and knee prostheses. In some cases, health funds are paying up to five times more for these devices than international consumers.
“We believe that would save our members in the order of 800-million dollars per year. We have agreed to pass that back as a discount on premium increases in future,” said Chief Executive of Private Healthcare Australia Dr Rachel David.
Sussan Ley claims the Government is currently reviewing this issue, so consumers should see savings on premiums from 2017 onwards.
In the meantime, Ms Ley suggests that Australians who are worried about covering the cost of private health insurance, should shop around for a better deal.
“You should revisit your product every couple of years to see if it is exactly what you need. You should demand answers from your private health insurer. You should ask questions. And you often can get a better deal,” said Ms Ley.
YourLifeChoices’ Editor Debbie McTaggart has some invaluable suggestions on how to save on health insurance costs in her Health insurance premiums on the rise piece, published earlier this week.
“If you only have private health insurance to save on the Medicare Levy Surcharge, having extras cover makes no difference. So consider whether you need it,” she writes.
Read more at www.sbs.com.au
Are you sick of the constantly rising cost of private health insurance? How much incentive is there for you to pay high premiums? What are those incentives? Does the cost of private cover outweigh the option of using the public system? How often do you review your private health cover?
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