Australian Private Health Insurance Premiums Expected to Surge

Promises fall through

Health Minister Greg Hunt’s avowal to tackle private health insurance premiums has gone belly up after a sharp increase in the sales volume of medical devices. As a result, insurance holders are now warned that private health will undergo a substantial premium increase next year- with numbers expected to double the rate of current inflation.

2019 has seen the lowest insurance premium hike in 17 years- up by an industry-weighted average of 3.25%.

And while there have been connotations around the Health Ministry that 2020 will see an even lower premium increase of less than 3%, insurance companies are now up in arms because the lowered premiums were received on the premise that they would be saving through lowered medical device costs.

In an interview with ABC Radio Perth, Dr Rachel David, CEO of Private Healthcare Australia, talks about the direct link between rising premiums and inflated cost of prostheses in Australia. She states that prostheses and medical devices cost roughly about 4 times more than they should and that this expense accounts for about 14% of the total premium.

Data from the Australian Prudential Regulation Authority  (APRA) showed a total prostheses payout of $2.08 billion by health funds in the last financial year- down $13 million from 2018.

Health Insurance Premiums

Dubious figures

There has been cost-cutting across the medical device industry, but the figures are showing something else entirely.

Private Healthcare Australia Chairman John Hill revealed that the APRA data showing the 8.6% hike in device sales sheds some questionable light on the industry, considering that hospital claims sit at 0.3%.

Allegations on the industry’s attempt to stay ahead of the new cost cuts through a new aggressive drive of sales techniques and a deliberate up-sell of ancillary devices, have been met with the reasoning that Australia simply needs more prostheses because of the aging population.

John Hill, Chairman of Private Healthcare Australia, said that insurers would have no other option but to carry those costs forward onto premiums.

Health funds have submitted their new April 2020 premiums for consideration to the Department of Health. The announcement on the new private health premium increase will be revealed by the Minister in late December.

Premium hikes have led to a mass dropping of health cover, particularly amongst younger Australians. As more young people are leaving the private health care sector, it leaves older people at risk of higher fees as they try to subsidise their costly health procedures.

If you want to avoid or reduce the price increase, Health Deal can help:

  • We assess existing private health insurance policies, for the customer’s actual medical requirements. Our experienced agents recommend alternative policies, especially for medical services that you don’t need. For example, a 65-year-old woman may not need the coverage for pregnancy, and other maternity-related services. Health Deal can save you from being ‘over-covered.’
  • We also compare policies with our health fund panel to identify the options that can reduce premiums. Health Deal will help you with options such as the choice of a shared room, private room, and choosing private health insurance companies that offer various services to suit the specific customer needs.

With our dedicated experts, we make sure that Australians find just the right private health insurance premium that gives them value for both money and cover.

Get your health cover compared today!

For more information regarding our services, give us a call on 1300 369 399.

Articles

Palliative Care

Palliative care focuses on providing quality of life for a patient and at the same time offers support and comfort to the patient’s family.

Read More →
Articles

Cardiovascular Diseases

Heart disease killed 17,533 Australians in 2018 — or about 48 every day. Despite being the leading cause of death, the standardised death rate from heart disease has decreased by 22.4 per cent since 2009 according to the ABS.

Read More →
Articles

Artificial Intelligence in Healthcare

Artificial Intelligence can influence the way that healthcare is currently delivered and can be utilised to provide better services to patients, healthcare providers, medical personnel, health organisations, and governing authorities.

Read More →
Articles

Boosting your immune system

Artificial intelligence (AI) is simply defined as the use of computers to perform tasks normally operated by man. Artificial intelligence is the creation of intelligent machines that work and react as humans.

Read More →
Articles

What is a pandemic?

The current active outbreak of coronavirus dubbed COVID-19 has now been declared a pandemic by the World Health Organization (WHO), the first of its kind.

Read More →
Articles

Aged Care

Aged care is the care provided to elderly people such as assistance with everyday living, medical services, accommodation and mobility aids such as walking frames and wheelchairs.

Read More →
Articles

Common hazards of manual handling

In any work environment, you are bound to be surrounded by hazards. A common occurrence of a workplace hazard is manual handling

Read More →
international womens day
Articles

Defining moments in Australian women’s healthcare

Defining moments in Australian women’s healthcare International Women’s Day 2020 A brief history of Australian women and the health care system Nearly a hundred years …

Read More →
Articles

Possible breakthrough for foot biomechanics and prosthetics

A new study may help orthopaedic doctors and podiatrists to have a better understanding of the human foot and how to treat it

Read More →
Articles

Travel Safety during the COVID-19

Stay informed about travel safety during the 2020 COVID-19 global crisis

Read More →
Renee Tan made the process simple.
Renee Tan made the process simple.
Tanya 17/10/2019
Read More
Renee Tan made the process simple. She very clearly explained all the options and changes and how that would and could impact our health insurance. Renee gave great service, which makes me want to recommend your services to my family and friends.
Responded very quickly to my email for…
Responded very quickly to my email for…
Shirley 17/10/2019
Read More
Responded very quickly to my email for help on finding a medical fund. Mark that I spoke to was great at helping and explaining everything to me that I needed to know. went through every step in detail and always asked if I had any question during the course of our conversation
Excellent service
Excellent service
Kristine 16/10/2019
Read More
Excellent service. Daniel is really good in explaining everything and very patient.
Daniel listened to what I wanted
Daniel listened to what I wanted
Lorraine 16/10/2019
Read More
Daniel listened to what I wanted , sent me email to review and called back when he said he would , also saved me $50+ per month , and kept adult kids on policy for a bit longer .
Wasn’t pushy
Wasn’t pushy
Shaylee 01/10/2019
Read More
Wasn’t pushy, asked what I required gave me adequate thinking time and I got off the phone a happy customer
This team and in particular Daniel
This team and in particular Daniel
Peter 20/09/2019
Read More
This team and in particular , Daniel was very helpful , took the time to explain in detail all aspects , and was very understanding and patient Highly recommend them
Previous
Next
Compare Health Insurance
I understand and accept Packleader Group's Privacy Policy. I agree that Health Deal may call me during call centre opening hours, and email or SMS me, about the services it provides.

1 thought on “Australian Private Health Insurance Premiums Expected to Surge”

  1. I’ve read several just right stuff here. Certainly value bookmarking for revisiting.
    I surprise how a lot attempt you put to make this type of fantastic informative
    site.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top