Health

Why do Private Health Insurance premiums go up on April 1st? Every year in Australia, Private Health Insurance premiums increase to align with wage growth and inflation rates. Due to the COVID-19 pandemic, insurers spread out their annual rate adjustments across 2021-2023 and sometimes skipped them altogether. However, in 2024, premiums returned to normal, with all Private Health Insurance companies implementing increases on April 1st. This year’s premium hike averages 3.03%, the steepest rise since the pandemic period. Minister for Health and Aged Care Mark Butler MP notes that while this increase resembles pre-pandemic levels last seen in 2019, it remains below Australia’s overall wage and inflation rate of 4.1%. Despite these adjustments, major Australian Private Health insurers have faced criticism for accumulating significant premiums during the pandemic. Insurers retained substantial sums while elective surgeries were halted during lockdowns. The ACCC has been actively pressing insurers to provide substantial refunds to policyholders through deferred premiums, cash-back payments, and limits on extras rollovers. Factors contributing to rising Private Health Insurance premiums include increased costs of medical devices, investments in IT infrastructure to enhance cybersecurity following recent cyber-attacks, higher hospital admissions, and general inflation affecting hospital operational expenses—all of which are passed on to policyholders. Summary Heading into 2024, ongoing inflation continues to impact many Australians’ budgets, with rising Private Health Insurance premiums adding further strain. The top five largest Private Health insurers by membership size, with the exception of one, are increasing their average policy prices beyond the industry standard of 3.03%. Medibank is raising prices by 3.31%, BUPA by 3.61%, HCF by 2.89%, NIB by 4.10%, and HBF by 3.95%. Conversely, insurers with the lowest rate hikes this year include HCi with a 0.27% increase, Defense Health by 1.00%, Australian Unity by 1.42%, People care by 1.63%, and Health Partners by 1.93%. Notably, all these insurers are mutual or not-for-profit entities. For those looking to manage their healthcare costs amid these increases, comparing Private Health Insurance plans through a trusted comparison service can help. Contact us today for a quick quote and find potential savings on your Private Health Insurance expenses this year. Compare Health Insurance Which Health Insurance companies went up the most in 2024? The top 12 health insurers that increased their premiums the most this year are CBHS, NIB, HBF, HIF, Phoenix, BUPA, OneMediFund, Hunter Health, Medibank, and St Lukes. Which Health Insurers were above the industry standard rate rise in both 2023 and 2024? The following Health Insurers have hiked their policy prices above the industry standard both last year and this year as well: CBHS, HBF, HIF, Phoenix, BUPA, Hunter Health, Medibank, ACA, and Navy Health. Industry Average Rate Rise in 2023 was 2.90% and the Average in 2024 is 3.10% Portability Don’t re-serve waiting periods when you switch to a new Health Fund or policy “John was immediately covered for a hip replacement in private hospital because he had already served his waiting periods for joint replacements on his old policy” The Top 10 Health Funds that had the lowest rate rise in 2024 The Health insurers with the least rate increase this year are HCI, Defence Health, Australian Unity, Peoplecare, Health Partners, TUH, Mildura Health, AIA Health, Queensland Country Health Fund, and Teachers/Nurses Health. Many Australians are over-insured or under-insured and may not have a policy that matches their health needs. Get advice now. Which health Funds in Australia were below the industry standard Health Insurance rate rise in both 2023 and 2024? These listed Funds are recognized for keeping their price increase lower than average for last year and this year running. They are HCI (who actually decreased their prices last year!), Peoplecare, TUH, Mildura Health, AIA Health, Teachers/Nurses Health, Doctors Health Fund, WestFund, GMHBA/Frank, Police Health, and LaTrobe Health. Here is the complete list for all Health Insurance rate rise increases for 2023 and 2024.  Conclusion Some Private Health insurers increase premiums more than others, but the reported percentage hike doesn’t directly correlate to your specific policy increase. For instance, while BUPA’s average increase is 3.61%, your individual policy might see a smaller or larger adjustment—perhaps 1% or 5%. You’ll receive official communication from your insurer detailing the exact change. It’s wise to regularly compare your policy with others in the market to ensure you’re getting the best value. Understanding how your coverage stacks up against alternatives is crucial. At CheckYourBill, we can assist you in finding Private Health Insurance options that not only meet your needs but potentially cost less. Why pay more for insurance when you could save without sacrificing coverage? Get started with a quote below. Related Blog The hospital “Gap” refers to the difference between what your private health insurance pays for a specific surgery and the total charges by the private doctor or anaesthetists. Private health insurance covers up to 100% of the Medicare Benefit Schedule fee for a procedure, but doctors can charge above this fee, creating a gap that the member must pay. When doctors participate in “gap cover” with the insurance company, the fund will pay more if the doctor agrees to a lower fee, resulting in no gap or a reduced gap for the patient. Understanding how gap cover works is crucial for minimizing out-of-pocket expenses. The best private health insurance funds for gap cover ensure that members face little to no additional costs for surgeries. Here are the top five funds that excelled in providing no-gap cover last year. Top 5 Private Health Funds for Best No-Gap Cover Last Year Get Started Apply Now

The 1 April 2024 Private Health Insurance (PHI) premium increase represents a return to norms with all Funds increasing rates on the same day, the first time this has occurred in five years. In this blog, we examine this premium round and investigate the noteworthy trends, product dynamics, competitive intensity and scale pricing strategies in the market. Trends in premium changes The following figures are average premium increases on products that cover singles across all states and excess levels. Unless otherwise stated, open and closed products are included and corporate products are excluded. Hospital and Combined Gold Hospital saw the greatest average increase at 6.4%, reiterating the claim cost pressures at this high level of cover. Combined Gold products fared slightly better, averaging 4.2% across the industry. Silver Plus products that cover pregnancy and/or joint replacements (shown as ‘Silver+ high’ in the graph below) saw average increases around 3.9% for standalone hospital and 2.9% for combined policies. Lower cover Silver, Basic/Basic+ and Bronze/Bronze+ tier products saw increases around 3% for standalone hospital and between 2.1% – 2.6% for combined products Extras Percentage back extras products (products with at least one percentage back modality) increased by 2.8%, compared to 2.1% for extras products with set benefits. This differential can be explained by the ‘automatic’ indexation of benefits on these products. Big 5 Funds The Big 5 Funds increased premiums at a greater rate than smaller players in the market. The smallest average increases were implemented by smaller Funds with open membership Product changes Number of product changes: Compared to the previous year, the landscape of Private Health Insurance (PHI) product changes has been relatively calm. The total number of Private Health Insurance (PHI) products in the market has remained mostly stable, with 106 new products introduced and 109 discontinued. Only 14% of Private Health Insurance (PHI) products experienced changes in coverage, were closed, or had modifications in benefits. This means approximately 86% of Private Health Insurance (PHI) products had minimal changes, marking the second-highest proportion of stability in the past five years. *Figures exclude corporate, are based on singles policies, each excess variant is counted as a separate product, state variants are combined and regarded as one product ^Only counts products where there has been a change of clinical categories or modalities covered. New products Hospital Several highly competitive Bronze Plus and Silver Plus – low products have been launched, making an already very competitive market segment even more competitive. This is detailed later in this blog. The Silver plus – high and Gold tier products launched generally sit above the market average for the level of benefits, reflecting the higher claims risk Funds are facing in these tiers. Extras There is a trend developing for extremely low coverage extras. nib launched its ‘DentalPass’ product, which costs around $3 a month and provides a small fixed benefit to the customer when visiting their provider network. Priced at under $20 per month, Medibank has launched ‘Healthy Living Extras’, offering a vaccination and just one dental check per year. The majority of the Extras products launched in the last 12 months offer good value for money and are priced below the market average for each level of benefits. This suggests the Extras market is also increasingly price competitive. Closed products There were 42 closures in the last year (3% annualised of all products). This is the second lowest rate of closures in the past five years. The majority of hospital closures were concentrated in the Gold and Silver Plus tiers, likely reflecting adverse selection challenges. Extras products that were closed were primarily grouped in the top half of the market in terms of coverage and were priced very competitively. Therefore, the closures were possibly driven by profitability challenges. Terminated products There were 109 terminations (and consequent forced migrations) in the year to 1 April 2024 – about 8% of all products. About 80% of the terminated hospital and combined products were in the Silver plus – high and Gold tiers. Of these, the majority were open for sale directly prior to the termination of the product, highlighting the claims cost challenges in these tiers. Products with changes in benefits 157 products had changes in benefits (11% of products). The majority of benefit changes involved the addition or subtraction of one or two coverage items, leading to a relatively minor change in value. 23 products saw a significant increase in coverage, while six saw a significant reduction. Competitive intensity We analyzed segments within the Private Health Insurance (PHI) hospital market that show the highest levels of ‘competitive intensity’. This refers to areas where insurers are most actively targeting customers. The graph below illustrates the count of $750 excess products across different tiers in NSW over the past five years (excluding corporate products). Similar trends are observed in other states as described for NSW. The Basic, Bronze, and Silver Plus – lower tiers have seen increasing competitive pressure over the last five years. Insurers are rapidly introducing new products to cater more closely to customer needs and preferences. These market segments also benefit from lower claims risk, avoiding high-cost medical categories such as joint replacements, pregnancy, and psychiatric hospitalizations. The Silver Plus – higher tier has also expanded, though to a lesser extent compared to the lower tiers. In contrast, the Gold cover tier is the only segment where the number of available products has decreased. Insurers offering Gold products have had to raise premiums significantly to maintain these offerings, as highlighted earlier. Scale pricing Here we analyze changes in the Private Health Insurance (PHI) market over the past year.The graphs below depict the number of insurers applying each scale of relative charges for various types of products. We focus on scales that have experienced notable adjustments.Specifically, we’ll examine the scale for One adult and dependents (Single Parent Family). In total, five Funds made some modifications to their Single Parent Family relativity. The main call out here being that Medibank reduced its Extras relativity from 2.0 to 1.9. Two adults

With the multitude of health insurance companies and brands available in Australia, choosing the right one can be challenging. It is crucial to select a health fund that provides reputable hospital coverage, fair extras rebates, flexible policy options, and exceptional customer service. In this article, we will examine the top five health funds in Australia for 2024. Our rankings are based on key performance data that is Publicly available from the latest annual State of the Health Funds Report by the Commonwealth Ombudsman for Private Health Insurance Who are the *best health insurance funds in Australia? Different Private Health Funds excel in various areas, so it’s not as straightforward as simply naming the top five. Interestingly, the big for-profit Private Health Insurers rarely top the charts. In Australia, not-for-profit Private Health Insurance funds tend to perform at a higher standard in the areas we have listed below. However, many not-for-profit funds have restrictions and are not accessible to everyday Australians. While the funds highlighted in this article are notable, it’s important to understand that these are general statistics. Any fund can have a mix of both poor-performing and high-value policies. The *best Private Health Insurance in Australia is one that is precisely matched to your needs and/or your family’s health needs – a process that requires expert advice from CheckYourBill. Get a quick quote now and check this off your to-do list. What Makes the *Best Health Insurance in Australia? We’ll start with an essential disclaimer: the following assessment of what makes the “*best” Private Health Insurance in Australia is based on general performance statistics. In other words, just because a Private Health fund appears strong on paper doesn’t mean it will be the best fit for you or that it will have a policy that suits your unique needs. This is why obtaining reliable Private Health Insurance advice and a transparent, informative comparison with CheckYourBill  is crucial. Several key indicators help measure the effectiveness of a Private Health Insurance company, including: – Gap-Cover performance in private hospitals– Coverage of hospital-related charges– Extras benefits provided– Total benefits returned to members compared to premiums paid– Member retention (customer satisfaction)– Share of total complaints relative to market share We will guide you through these performance indicators to help you understand their significance when comparing a Private Health Insurance company or brand. *Best Health Insurance for Member Retention   Member Retention means the percentage of members who join the health fund that remain as a member and do not leave. A high customer retention number means the fund members are happy and are less likely to cancel or switch to another insurer – a fair indicator that the fund is doing something right. Other factors may include a very convincing retention team that contact members when they leave to entice them to stay. *Top 5 Health Insurance Companies for Member Retention (Open vs Restricted)(Stats source) Who is the *best Health Insurance for Benefits vs Premiums paid The benefits-as-a-percentage-of-contributions score indicates how much a Private Health Insurer returns to members compared to what members pay for their policies. This figure can be understood as cents returned per dollar. For instance, if a Private Health Fund has a 90% benefits score, it means the fund returns 90 cents for every dollar received. The term ‘benefits’ includes any payouts across private hospital and extras cover. This metric serves as a general indicator, revealing that any fund can have both highly generous policies and less favorable ones. Therefore, this performance indicator shouldn’t be the sole deciding factor when choosing a new Private Health Insurer. When evaluating Private Health Insurance, consider that the benefits percentage score is just one aspect. Ensure you look at other key performance indicators to make an informed decision. *Top 5 Private Health Insurance Companies for Benefits % (Open vs Restricted)(Stats source) Percentage of Total Complaints Vs Market Share We created this metric by comparing the Health Fund’s share of total industry complaints versus their market share. For example, if a health insurer has a 20% Market share but only 10% of all complaints, we can surmise that the Fund has a 0.5 Quality Score (the lower, the better) and significantly fewer complaints than they should have. In other words, they’re looking after their members and minimising areas where customers may need to complain. *Top 5 Health Funds for Quality Score (Complaints vs Market Share) (Stats source) Who is the *best Health Insurance in Australia for hospital related charges covered? When a member with Private Health Insurance visits a private hospital for in-patient services, numerous hospital-related charges can be covered by their insurance provider. These charges often include accommodation, theatre-room fees, and associated doctor’s fees. The following list highlights the *top Private Health Funds that cover the most hospital-related charges across Australia. It’s important to note that performance can vary by state, so consider the specific performance of each fund in your region. By understanding which Private Health Insurance companies excel in covering hospital-related charges, you can make a more informed decision about the best coverage for your needs. This evaluation is based on a broad average across the country, highlighting the top performers in providing comprehensive hospital coverage. *Best Private Health Funds for Hospital-Related Charges (Australia-Wide)(Stats source) Which Health Insurance companies performed *best for No Gap Cover in Hospital? The hospital “Gap” refers to the difference between what your Private Health Insurance pays for a specific surgery and the total charges by the private doctor or anesthetists. Private Health Insurance covers up to 100% of the Medicare Benefit Schedule fee for a procedure, but doctors can charge above this fee, creating a gap that the member must pay. When doctors participate in “gap cover” with the insurance company, the fund will pay more if the doctor agrees to a lower fee, resulting in no gap or a reduced gap for the patient. Understanding how gap cover works is crucial for minimizing out-of-pocket expenses. The *best Private Health Insurance funds for gap cover ensure that members face little to no additional costs for surgeries.

  Introduction Energy is a topic often overlooked in casual conversation, but beneath its seemingly mundane surface lies a world of fascinating facts and impactful decisions. In this article, we delve into 10 intriguing facts about energy in Australia that are sure to spark conversations and ignite curiosity. Exploring the Advantages of Private Health Insurance: Private Health Insurance offers an array of benefits, including: Reduced Waiting Times: Access to expedited elective surgeries, alleviating the burden of lengthy waiting lists in public hospitals. Choice of Treatment and Providers: Empowerment to select medical treatments and healthcare providers, fostering a personalised healthcare journey. Private Hospital Amenities: Enjoyment of amenities such as private rooms, enhancing comfort during hospital stays. Extras Cover: Coverage for ancillary services like ambulance, physiotherapy, and dental care, supplementing gaps in public healthcare coverage. Tax Benefits: Potential savings through exemptions from the Medicare Levy Surcharge and eligibility for government rebates. Lifetime Health Cover Loading: Incentivise for early adoption of Private Health Insurance, mitigating potential premium increases. Navigating the Challenges of Private Health Insurance: Despite its advantages, private health insurance poses certain challenges, including: Out-of-Pocket Costs: Incurrence of copayments and out-of-pocket expenses, necessitating financial planning. Exclusions and Waiting Periods: Awareness of policy exclusions and waiting periods for certain treatments, necessitating careful scrutiny of policy terms. Complexity of Plans: Evaluation of the diverse range of Private Health Insurance plans, requiring thorough research to identify the most suitable option. Premium Increases: Anticipation of annual premium hikes, necessitating budget adjustments to accommodate rising costs. Scenario Example: Knee Replacement Surgery Costs Comparison: Comparing the costs of knee replacement surgery with and without Private Health Insurance underscores the financial implications and benefits of coverage. While public healthcare offers potential cost savings but extended waiting times, private health insurance enables timely access to preferred specialists albeit with varying out-of-pocket expenses. Leveraging CheckYourBill for Informed Decision-Making: With CheckYourBill’ intuitive online comparison tool, individuals can navigate the intricacies of Private Health Insurance plans effortlessly. By harnessing this resource, users can evaluate policies based on their unique healthcare needs and financial considerations, empowering them to make informed decisions aligned with their priorities. Conclusion: Private Health Insurance presents a multifaceted landscape of advantages and challenges, necessitating careful deliberation to determine its suitability. By leveraging the resources provided by CheckYourBill, individuals can embark on their healthcare journey with confidence, equipped with the knowledge to navigate the complexities of Private Health Insurance and select a policy that best aligns with their needs and preferences. Related Blog Get Started Apply Now

Introduction Private Health Insurance serves as a pivotal supplement to Australia’s public healthcare system, offering individuals greater control, faster access, and a more personalised healthcare experience. As a crucial aspect of managing one’s well-being, understanding Private Health Insurance and its nuances is essential. By delving into its intricacies and aligning your needs with suitable policies, you can optimise your healthcare journey. CheckYourBill, a service brand dedicated to empowering users with insightful comparisons, facilitates this process by aiding individuals in selecting the most fitting insurance plan. Exploring Private Health Insurance: Private Health Insurance in Australia functions as an additional layer of choice and comfort alongside the public healthcare system provided by Medicare. It offers personalised healthcare experiences by allowing individuals to choose their doctors, expedite medical treatments, and access private hospital amenities. Types of Private Health Insurance: 1. Hospital Cover: This encompasses various tiers ranging from basic to gold cover, offering access to private hospitals and a spectrum of in-hospital treatments. 2. Extras Cover: This extends coverage to services typically not covered by Medicare, including dental work, physiotherapy, and optical care. Understanding Coverage and Costs: While Private Health Insurance enriches healthcare options, it’s crucial to acknowledge that it doesn’t cover all expenses. Individuals may encounter out-of-pocket costs depending on their coverage level and the treatments received. Navigating Waiting Periods: Private Health Insurance policies often entail waiting periods, ensuring equitable access to services. Understanding these waiting periods helps individuals manage expectations and plan accordingly. Determining Premium Value: Assessing the value and premiums costs of Private Health Insurance hinges on various factors such as income, age, place of residence and health conditions. Key considerations include income thresholds, age-related penalties, and the availability of tax rebates. Private and Public Healthcare Partnership: Private Health Insurance complements public healthcare by providing individuals with choice and flexibility in both in-hospital and out-of-hospital services. Choosing the Right Policy: Selecting an appropriate Private Health Insurance policy requires thorough evaluation of exclusions, waiting periods, and premium costs. Utilising comparison tools such as those offered by CheckYourBill streamlines this process, empowering individuals to make informed decisions tailored to their needs. Conclusion: Private Health Insurance serves as a cornerstone of Australia’s healthcare landscape, offering individuals enhanced choices and expedited access to medical services. By leveraging resources like CheckYourBill, individuals can navigate the complexities of Private Health Insurance and embark on a healthcare journey aligned with their preferences and requirements. Related Blog Get Started Apply Now