Health Insurance News

The forthcoming round of premium increase applications is likely to be among the most complex insurers have ever made. 

This is mainly due to the wide-ranging private health insurance reforms package announced in October 2017 that aims to make private health cover more affordable and less complex for Australians. However, in order to permit a smooth transition, insurers need to plan ahead.

Here's what you need to know:

The rising cost of private health insurance in Australia is hardly breaking news. Between 2014 and 2018, premiums increased by 29%, based on the industry weighted increases provided by the Australian Government Department of Health over that period, in a pattern that stretches back more than a decade.

From April 1st 2018, premiums for private health insurance increased by an average of 3.95 per cent in a trend that's becoming familiar to Australians who keep up with the news.

Private health insurance gives consumers more freedom when it comes to health care. As of 31 December 2017, 45.6 per cent of the Australian population were covered by hospital treatment insurance, according to the Australian Prudential Regulation Authority (APRA). The APRA quarterly report shows that health insurance funds are returning the highest percentage of the premium back to members of all insurance types.