October rings in with a note of caution for many Australians as major health funds including Bupa, NIB, GMHBA, Qantas, and Frank announce a 2.9% industry average bump in premiums starting 1 October. This move ends the temporary halt in premium hikes, a reprieve that was largely appreciated by citizens amidst the cost-of-living crisis spurred by the COVID-19 pandemic. The exact spike in rates will, however, dance to a different tune across various funds and individual policies, which means some Australians could find themselves shelling out up to $170 more annually.
Typically, the calendars of health funds mark 1 April as the day for adjusting premium prices. Yet, 2023 painted a different scenario; many funds hit the pause button on premium increases to ease the cost burdens and to adjust for the lower claim volumes during the pandemic’s peak. Yet, as other funds like AHM, Medibank, AIA, and HCF have already set the ball rolling by implementing their delayed rate hikes, it was only a matter of time before the rest followed suit.
The underpinning rationale behind this upswing in premiums is the rising operational costs that health funds are juggling with. The expenses span from treatment costs to the provision of top-tier healthcare, making this increase seem almost inevitable. Fast forward to now, over 5.1 million Australians are on the verge of receiving notifications from their health funds about the forthcoming premium increase, provided their policies fall under the impacted bracket.
Comprehensive policies, while being a smorgasbord of inclusions, carry the weight of higher premiums, sometimes encompassing unneeded inclusions for some individuals. This brings to light an alternative route—switching to a lower hospital insurance tier, especially for individuals whose health circumstances have reshaped over time. Such a switch could still cover the essential healthcare needs while potentially easing the financial load.
However, this path is not without its set of caveats. Before making the leap to a new policy or opting for a different tier, a thorough perusal of the policy brochure is paramount to grasp the key distinctions such as waiting periods, changes in inclusions or exclusions, and excess amounts. And while the new policy will tip its hat to any waiting periods already served, it’s crucial to note that waiting periods for new or upgraded services or benefits will still be in play.
As the health funds recalibrate their premium structures, the scenario underscores the imperative of informed decision-making for individuals. Delving into the finer details of policy terms, assessing one’s healthcare needs, and possibly embracing a change in policy tier could be the stepping stones toward navigating this new terrain of heightened premiums.
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Major Australian health funds, including Bupa & NIB, are increasing premiums by an average of 2.9%, ending a temporary halt & potentially costing individuals up to $170 more annually. 😷💰🏥 #TheIndianSunhttps://t.co/xBDcUBYYmV
— The Indian Sun (@The_Indian_Sun) October 5, 2023
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