Private health insurance rises
Private health insurance premiums will rise by 5% from the start of next month, in a move which National Seniors describes as “another blow” to older Australians. Health Minister Tanya Plibersek announced the average increase last week, which will take effect on 1 April.
Private health insurance premiums will rise by 5% from the start of next month, in a move which National Seniors describes as “another blow” to older Australians.
Health Minister Tanya Plibersek announced the average increase last week, which will take effect on 1 April.
Price increases will reportedly depend on individual coverage and insurers will inform customers of the exact rises.
National Seniors chief executive, Michael O’Neill, said the increase would add to the “battle” against rising living costs for ageing Australians.
In particular, Mr O’Neill claimed those aged over-70 years would “do it tough” as they tried to meet the “growing cost of everyday essentials, from utilities to home maintenance and medical bills”.
“Retirees on low fixed incomes have very limited capacity to adjust to these price increases,” he added.
Mr O’Neill described private health insurance as “something older Australians couldn’t do without”.
“At this time in their lives, [private health insurance] is something older Australians can’t do without. But gap payments and premium hikes are making it increasingly difficult for them to hang in there.
“Where is the sense in pricing people out of private cover and onto public hospital waiting lists?” he asked.
Mr O’Neill claimed insurance companies would do well to consider creative ways – such as a no-claim bonus – of rewarding, and alleviating the pressure on, elderly long-term policy-holders.
The average premium increase was achieved after 24 of 34 health insurers were asked to resubmit their applications to provide further evidence to justify the increase requested.
Ms Plibersek maintained this year’s increase was lower than last year (5.56%), and lower than the rising amounts charged by doctors and hospitals in the past year.
Private health insurance premium applications are assessed by the government to ensure increases are the minimum necessary to meet legal requirements.
An additional one million people had reportedly taken out private hospital insurance since 2007, with more than 10.4 million Australians now covered, the highest number since June 1975.
