“Today’s announcement of an average 3.25% annual rate rise for private health insurance policyholders may be the lowest since 2001 but many consumers will still need to fork out an additional $131.30[i] for the same level of cover. Also, with the once 30% rebate predicted to fall below 25% come April 1, this is a double blow for millions of consumers who rely on the rebate to subsidise the cost of their health cover.
“In addition, policyholders face months of confusion as the industry is set to adopt the long-awaited governmental private health insurance reforms. With many funds indicating that they will implement changes from as early as April 2019, policyholders should expect to receive information from their fund about changes to the name, price and coverage of their policy.
“Almost all policies will have some change, which may see many consumers shifted onto compliant products that their fund deems comparable to their existing policy. Rather than relying on your fund to choose the best product for your needs, we encourage consumers to use the upcoming health insurance changes as a reminder to shop around for a policy that better suits their needs and budget.”
Abigail Koch, spokesperson, Compare the Market
[i] Based on the average cost of a combined (hospital & extras) family policy ($4,040), as reported by independent market research firm, Ipsos. Research commissioned by comparethemarket.com.au and conducted by Ipsos Mori in January 2018.
For all the latest updates on the reforms, visit our 2019 health insurance reforms live news page.