Young quit health funds

THE number of young people looking to join health funds has plunged by a third in the last five years in a trend threatening to further drive up skyrocketing premiums.

And health funds and other industry players are calling on the government to introduce discounted premiums for people who join a fund by age 25

When young and healthy people don’t join health funds it means insurers are loaded up with older people more likely to claim which pushes up the price which is already rising at four times the inflation rate.

Health fund comparison service iSelect says the number of 30-31 year olds using its service to take out cover has plunged by almost one third since 2013. Australian Prudential Regulation Authority data shows 14,462 people aged under 29 dropped cover from December to March.