Health Insurance costs set to rise again, after government deal falls through.
Sydney, New South Wales, October 24 2019. Private health insurance premium increases next year are likely to be twice the rate of inflation. This announcement came after Health Minister Greg Hunt’s agreement with the medical devices industry failed to lower costs as promised. This will impact the goal of restricting the 2020 health insurance premium increases to an average of 3 percent. An outcome that is poll opposite to Labor’s plan to cap private health premiums to 2 percent for two years, back in 2018.
Private Healthcare Australia’s chairman John Hill claimed that health insurers will have “no other option” but to pass on the rising costs to consumers. As a result, insurers are expected to submit their proposed premium increases to the health department, which must be approved by next month. The finalised premium increase will be announced in late December, with the price increase to apply from April 1 2020. Not all health insurers are expected to raise their premiums, with some increasing their prices far more than others. This leaves consumers with the option to compare their health insurance, to ensure they are getting appropriate cover for the most affordable price.
The federal government is certainly under pressure to reduce premiums, specifically as an increasing number of young Australians drop their coverage due to high premiums and perceived lack of value. According to the latest data from the Australian Prudential Regulation Authority, a total of 65,000 Australians dropped their health insurance between the period of December 2017 and December 2018. CEO of Health Insurance Comparison, Andrew Davis, says “it is extremely common to find Australians paying more than necessary for their health insurance.” It is therefore highly encouraged that consumers review their health insurance to see what other options are available on the market as it is likely that consumers will be able to pay less while getting cover that is better suited to their needs.
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