Private health insurance is often in the news and unfortunately, the information provided by the media isn’t always reflective of what’s happening in the industry or applicable to all health funds. We’ve answered a few common questions about the annual industry premium and product adjustments below.
Why do premiums change?
The growing number of complex and expensive procedures performed in private hospitals, combined with increasing hospital costs, including doctors’ fees, changing technology and improvements to medical equipment all contribute to the amount that premiums change.
More private health insurance claims than ever are now being made across the industry with 60% of all admissions involving surgery and 70% of elective surgery being delivered in the private sector.*
The Australian Government Rebate on Private Health Insurance has also been reviewed and to the disappointment of Phoenix Health, will be reduced from 1 April 2020. The reduced rebate means private health insurance members pay more while the government contributes less. View the Australian Government Rebates on Private Health Insurance from 1 April 2020.
What is Phoenix Health doing to keep premiums affordable?
Being a not-for-profit health fund, Phoenix Health doesn’t pay shareholders, our first priority is our members and any adjustments made are the minimum required to continue to provide quality benefits and services. We are also conscious of providing enhanced health management programs to better improve health and wellbeing outcomes for members.
Phoenix Health has extended the government age-based discount to additional hospital covers for members under the age of 30, saving more members up to 10% on their hospital premiums. Read more about the Age Based Discounts.
We welcome member feedback and take into consideration our members views in relation to ensuring our products continue to meet your changing needs.
Why is my premium change different to the average for Phoenix Health or other health funds?
Each hospital and extras product is reviewed individually based on the services, benefits and limits they cover and the changing costs relating to all included services. The Phoenix Health 2020 average of 3.10% is an average across all Phoenix Health hospital and extras covers.
When comparing your premium adjustments against those of your family and friends or those in the media, it’s important to remember to look past the percentage and consider the value and benefits your cover provides.
How often should I review my cover?
Insurance is often a set-and-forget purchase; we choose the policy that best suits our needs and then tend to leave it be until it comes time to make a claim.
If your circumstances or life stage have changed or it’s been a few years since you looked at your cover, it might be time for a health cover health check. You can see our full range of products here or contact the Phoenix Health team for a health cover health check.
*Source: Members Health Fund Alliance