David Koch explains why not having it can cost you more.
Another annual premium fund rise will likely see more pressure placed on the public health system. Picture: iStock
HEALTH fund premiums will rise by another 5.59 per cent on average from next month, adding more than $200 a year to the already-steep cost of family cover and delivering insurers an extra $1 billion of revenue.
The increase, which will be confirmed today by Health Minister Sussan Ley, is the ninth in a row of five per cent-plus increases.
Steep successive rises dating back as far as 2002 mean a policy that cost $2000 then will now set a household back $4840 — an increase of 142 per cent, compared to economy-wide inflation of less than 50 per cent.
FULL LIST: Health fund premiums rises from April 1
News Corp Australia can reveal industry no. 1 Medibank, which provides three in every 10 policies, will lift its prices by an average of 5.64 per cent from April 1.
No. 2 Bupa, which has more than a quarter of the market, will push up its charges by 5.69 per cent.
The other major providers, HCF, NIB and HBF, will increase by 5.42 per cent, 5.55 per cent and 4.94 per cent respectively.
The biggest jump will be for the 58,000 members of CUA Health, at 8.95 per cent.
The smallest increase, of just 3.76 per cent, will be experienced by those in the Doctors’ Health Fund, which is restricted to medical practitioners, their families and employees.
The industry-wide increase is half a percentage point less than last year’s 6.18 per cent and follows 20 of 33 providers reducing their initial 2016 claims in response to push-back by Ms Ley.
It was the first time in three years that funds were asked to resubmit, with bids lowered by as much as 1.5 per cent.
Federal Health Minister Sussan Ley asked the health funds to resubmit their proposed premium increases. Picture: AP / Mick TsikasSource:AAP
Across the board, $125 million was shaved from what insurers had sought. But, to put that in context, their total premium revenue will be more than $22 billion. And there had been hopes that the resubmission process might contain the overall increase to as little as 4 per cent.
News Corp Australia understands Ms Ley will today commit the Turnbull government to delivering smaller rises in the years ahead through proposed reforms including lowering funds’ costs when members have a hip operation or get a pacemaker.
Medibank Private CEO George Savvides has approved a lift its prices by an average of 5.64 per cent from April 1. Picture: AAP / Joe CastroSource:AAP
More than 13 million Australians, or 56 per cent of the population, have some form of health insurance. Coverage has begun to decline as the cost of protection rises beyond the budget of more and more households.
A survey of 40,000 consumers for the government recently found two-thirds of respondents didn’t believe health insurance offered value for money anymore.
Funds pocketed an extra $106 million in profit in 2015 — an increase of 10 per cent. Their collective net earnings rose to $1.19 billion in 2015 from $1.08 billion the year before.
PRICE HIKES HITTING POLICIES
THE number of Australians using hospital-only health policies has fallen by 97 per cent in less than a decade.
Despite the fact the budget-saving health cover is all consumers need to avoid a run-in with the taxman and an excruciating wait for elective surgery, only 6000 households have it. That figure represents a 97 per cent fall since 2007.
However, during the same period, the number of extras-only health fund products — which do not insulate holders against the Medicare Levy Surcharge — taken out have soared by 58 per cent to 762,000, suggesting funds’ marketing machines have been successful in spruiking what are usually more profitable products for them.
The number of combined hospital and extras policies has risen by 38 per cent to 5.5 million for the same period.
Experts have argued that as the cost of combined cover skyrockets, axing so-called “extras” and going hospital-only should be a live option.
“My view is that extras cover is bad value for most people and they would be better to pay for these items themselves,” said Elizabeth Savage, University of Technology Sydney professor of health economics.
“It’s obvious. The marketing is not about hospitals any more. It’s about extras.
“I have hospital-only cover. It’s a sensible option.”
Leading consumer group Choice said hospital cover alone was enough to avoid the Medicare Levy Surcharge and Lifetime Health Cover loading.
“If you are looking to save don’t be tricked by your insurer into downgrading to a junk hospital policy,” Tom Godfrey said. “If you’re not getting value from your extras cover — drop it. And opt for a top cover hospital policy with an excess or co-payment.”
Choice spokesman Tom Godfrey advised families cash-strapped to opt for a top cover hospital policy with an excess or co-payment. Picture: Supplied.Source:Supplied
Axing “extras” — which can include cover for services such as dental, optical, physio and natural therapies — can lop as much as 44 per cent from annual premiums, saving a NSW household with top cover more than $2800. A family able to claim 60 per cent of their cost of general treatment would need to outlay at least $4700 to be better off with extras, analysis by News Corp Australia and Choice reveals.
Australian Dental Association president Rick Olive said funds were retaining between 22 and 25 per cent of extras premiums. Speaking specifically of dentistry Dr Olive said “it’s about providing a profit for private health insurers”.
EMAIL: john.rolfe@news.com.au
0 nhận xét:
Đăng nhận xét