How the changes in private health insurance could impact you
The Federal Government plans to make significant changes to private health insurance, with a focus on cheaper premiums and easier access to mental healthcare.
Federal Health Minister Greg Hunt announced the changes to the private health insurance system, with those under 30 expected to receive the most benefits.
These changes will allow insurers to discount hospital insurance premiums for 18 to 29-year-olds by up to 10 per cent. The discount will phase out after people turn 40.
“The more young people you have in the system, the lower the average cost of premiums for everybody," Mr Hunt told ABC TV.
People with hospital insurance without the full cover for mental health treatment will be able to upgrade their cover and access mental health services without a waiting period on a one-off basis.
The changes will allow insurers to offer travel and accommodation benefits for people in regional and rural areas that need to travel for treatment.
A deal has also been secured with the Medical Technology Association of Australia to lower the price of implanted medical devices from February 1, 2018. This is expected to lower premiums from April 2018.
The maximum excess will also be raised, allowing those with private health insurance to select a higher excess in exchange for a lower premium.
Standard definitions will be implemented and products will be categorised as gold, silver, bronze and basic, to make it clear to consumers what policies do and do not cover. The government believes these new categories will help Australians shop around for the best private health insurance deal.
Private Health Insurance Ombudsman powers will be enhanced to ensure consumer complaints are quickly and efficiently resolved. The strengthened authority will allow the Private Health Insurance Ombudsman to carry out inspections and audits of private health insurers to guarantee they are meeting regulatory obligations.
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