Five things you need to know about the 2019 rate rise
Why comparing your existing health fund policy before April 1 could help you save
You may have seen Australian health funds mentioned in the media recently, due to discussions regarding the impending health fund reform and the imminent rate rise.
Currently, there is a considerable amount of confusion surrounding the ‘simplification’ of private health care system and what these changes will mean for new and existing members over 2019 and beyond. With so much information circulating, it’s hard to work out exactly what you need to know, and why it’s important to check and compare your existing policy ASAP, to have things sorted before April 1st.
We’ve compiled a quick list of five facts to help you better understand the changes:
- Private health funds will be raising their premiums by an average of 3.25% on April 1 2019. Though it’s set to be the lowest hike in 18 years, the premium rises will mean a single person will pay an average of $60 extra per year, and a family will pay $123 more, annually.* Many people will have an increase that is much higher than 3.25% and will pay hundreds more.
- Under the reform, the current system will simplify hospital products into four tiers of cover: Gold, Silver, Bronze and Basic—each with different minimum levels of cover. Basic category products will have the least cover, and Gold products the highest. There will also be two ‘Plus’ categories. Silver Plus will have more than Silver but less than Gold, and Bronze Plus more than Bronze but less than Silver.
- The maximum excess fee that can be included in policies for hospital admissions has increased from $500 up to $750 for singles, and for couples and families a significant rise of up to $1500 (from $1000).
- Sixteen natural health therapies, such as aromatherapy, iridology and yoga, will no longer be claimable treatments and will therefore be removed from policies.
- Insurers will also be able to offer discounts of up to ten per cent for young people up to the age of 30—a discount that can be retained until the age of 41, but only if the policyholder remains on the same policy.
“These changes present a good opportunity for policyholders to reassess what they need to be covered for,” explained Jonathan Leane, founder of Health Insurance Comparison. “There is the potential that customers could actually save more on their policies if they compare before April 1. Many Australians could still be paying for unnecessary services, or have an important service not included under their old cover.”
“At Health Insurance Comparison, we see the proposed changes as a positive opportunity to better understand the system and reduce the strain on your wallet. That’s why we’re offering free comparison to all Australian policyholders before April 1st. It’s a really great time to compare, because both policies are changing and rates are increasing”.
There’s never been a better time to evaluate your cover.
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Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.