Health funds revamp
Govt to shake up insurance industry
HEALTH fund premiums for those under 30 will drop by up to 10 per cent and insurers will be banned from covering unproven natural therapies under an overhaul of private health insurance.
Health Minister Greg Hunt will today unveil 14 changes to control health fund premiums that have been rising at many times the inflation rate, forcing tens of thousands of people a month to drop their cover.
HEALTH fund premiums for those aged under 30 will drop by up to 10 per cent and insurers will be banned from covering “unproven” natural therapies under a major overhaul of the private health insurance industry.
Federal Health Minister Greg Hunt will today unveil 14 changes to control health fund premiums, which have been rising at many times the inflation rate and forcing tens of thousands of people a month to drop their cover.
Under the changes, people aged 18-25 will get a premium discount worth 2 per cent a year for each year they belong to a health fund, the discounts will phase out by the time they turn 40.
To save funds money, rebates for a large range of natural therapies will be banned, including Alexander technique, aromatherapy, Bowen therapy, Buteyko, Feldenkrais, herbalism, homoeopathy, iridology, kinesiology, naturopathy, pilates, reflexology, Rolfing, shiatsu, tai chi and yoga.
Premium rises for those aged over 30 will be 1 per cent a year lower as the Government slashes by $1 billion the amount health funds pay for prostheses such as hip and knee replacements over the next four years.
“We know that every dollar matters to Australian families and these reforms will get better value for families and make policies easier to understand,” Mr Hunt said.
A new rural health product will see health funds offer travel and accommodation benefits under hospital cover.
Eight in 10 health fund members opt to pay an excess to lower their premiums and Mr Hunt will lift the cap on these excesses from $500 to $750 for singles and from $1000 to $1500 for families.
The Government will try to end the confusion surrounding the choice of the best health fund policy by revamping its private health insurance ombudsman website and giving the ombudsman six more staff.
The ombudsman’s website will be upgraded to ask people what they want to be covered for and what their income is, and suggest all the policy options from every health fund.
Health funds have pledged all the savings they make as a result of paying less for hip and knee replacements and other medical devices will be passed on through lower premiums.
“The Federal Government should be commended for tackling the corruption, rorts and kickbacks that over time became a feature of this system, leading to poor outcomes for consumers in terms of both cost and safety,” Private Healthcare Australia chief executive Dr Rachel David said.
Consumer’s Health Forum chief Leanne Wells said the reforms appeared likely to deliver lower premium increases in the medium term.
But she said discounts for younger members threatened to undermine the community rating principle fundamental to Australian health insurance which is meant to treat everyone equally regardless of age or health status.