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Health cover rises flatten but still pose cost hurdle for many
The lowest average rise in health insurance premiums in nearly 20 years is welcome although many Australians in the current economic climate will struggle to meet the increased cost, the Consumers Health Forum said today.
“The 2.74 per cent average increase in premiums to take effect next April is particularly welcome when family and personal budgets are under even more strain and the need for care in areas including mental health continues to grow,” the CEO of the Consumers Health Forum, Leanne Wells, said.
“While the new rise is low compared to previous years, it is still well above the inflation rate of 0.7 per cent for the year to September. There are unlikely to be many people able to absorb a premium increase without further squeezing their budgets.
Big health insurers ratchet up premiums
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Australia s biggest for-profit health insurers Medibank, NIB and Bupa have been given the federal government s blessing to increase premiums at a higher rate than their biggest non-profit competitors HCF and HBF, health department figures show.
Of the big five, NIB s increase was the highest at 4.36 per cent, while HBF s was the lowest at 0.94 per cent. Medibank secured an increase of 3.25 per cent, Bupa s was 3.21 per cent and HCF s was 2.95 per cent.
Together those five funds make up more than 80 per cent of the market.
NIB boss Mark Fitzgibbon: âGiven NIB s success in growing our membership base . we are effectively subsiding the rest of the industry. Â
Health Insurance Premiums to Rise
The federal government has authorised a rise in private health insurance premiums that will cost families an extra $126 a year on average.
The 2.74 percent annual increase will take effect from April and builds on rises of 2.92 percent this year and 3.25 percent in 2019.
Almost 14 million Australians will be impacted by the cost increase.
A single person will pay an extra $1.14 per week, and a family will pay $2.44 more a week.
But Health Minister Greg Hunt says it’s the lowest annual average premium increase in 20 years.
“Australian government reforms mean private health insurance will continue to offer Australian families affordable choice and flexibility in their health care,” his office said in a statement on Monday.
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