Health funds cut member benefits

HEALTH funds have begun axing benefits from their members just weeks after announcing they would raise premiums by almost twice the inflation rate.

Up to half of all policy holders are receiving letters explaining their entitlements have changed as a result of the Federal Government’s Gold, Silver, Bronze and Basic health reforms – designed to simplify cover – which come into effect in April. Some members will find themselves paying higher premiums that deliver fewer benefits.

Medibank this week emailed members with midrange corporate hospital products to warn they would axe benefits for 70 treatments.

Benefits for another 64, inhospital psychiatry or psychotherapy services, will be restricted and members who claim for this care will face large out-of-pocket expenses.

Customers with extras cover will also lose benefits for 10 natural therapies from April 1. The cuts were part of the Government’s reforms that would “make health insurance simpler to understand”, the fund says in an email to members.

“Anything which makes private health insurance more expensive or less value for money will continue the exodus from insurance and build up the stress on the public system to the detriment of patients on long waiting lists,” Australian Medical Association president Tony Bartone said.

Private Healthcare Australia chief Rachel David said benefit changes would be widespread, with one third to one half of health fund members being affected.