Shake-up in premiums

Unproven therapies face health fund ban

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 – like yoga and pilates – under a major 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.

Under the changes, people aged 18-25 will get a premium discount worth 2 per cent per 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 unproven 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 like 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 result in health funds offering travel and accommodation benefits under hospital cover to make private health insurance more attractive for people in rural and remote areas.

Eight in 10 health fund members opt to pay an excess to lower their premiums and Mr Hunt will lift the cap on the excesses from $500 to $750 for singles and from $1000 to $1500 for families.

Health fund policies will be classified as gold, silver and bronze and have to meet certain standard coverage conditions.

The minimum requirements for each category will be finalised in 2017-18.