GMHBA suspends premium increases for six months

PRIVATE health insurer GMHBA will suspend planned increases to its premiums for at least six months due to the coronavirus pandemic.

The Geelong-based notfor-profit health fund was scheduled to increase premiums on Wednesday, but said it had decided to suspend the rise to support its members during a challenging period.

GMHBA chief executive officer Mark Valena said the decision would ensure members could afford the cover they needed.

“This decision is about putting members first,” Mr Valena said.

“These are unprecedented and trying times and we know that many of our members are now in difficult health and financial situations.”

Mr Valena said under a new COVID-19 support package members would also have access to 12 month hardship suspensions, coverage for COVID-19 hospitalisations and telehealth physiotherapy and psychology benefits.

“This support package is substantial and provides care and support while also providing peace of mind to our members at a time of great uncertainty,” Mr Valena said.

“We will continue to monitor this rapidly evolving situation and keep the lines of communication open with our members so they understand how to access the best support when and where they need it.”

GMHBA was one of more than 20 funds that made the change after News Corp revealed they would save hundreds of millions of dollars as a result of a government ban on non-urgent surgery because of COVID-19.

Many people are also unable to access extras services like dental care, optometry, physiotherapy and massages as a result of closures and social-distancing restrictions connected to COVID-19 undermining the value of ancillary cover and delivering further savings to health funds.

The restrictions have severely undermined the value of private health cover and funds are fearful millions of out of work Australians will dump their cover to save money.