April Health Premium Rise Aftermath: You Can Still Switch

In the wake of the April 1 health insurance price rise, health groups are still reminding consumers to shop around for private health insurance.

The Consumers Health Forum (CHF) has reassured Australians that they can change health funds at any time, not just before 1 April.

CHF CEO Leanne Wells said the widespread angst generated by the April 1 price rise may have made consumers feel rushed into making decisions about their health fund.

“In most cases they [consumers] should be able to change from one fund to another with one month’s notice without facing any financial penalty,” Ms Wells said.

“In fact, fund members are not locked into any one fund for a year. Even if they have paid a year’s premium upfront, they can be reimbursed the outstanding amount if they change funds.

“With typical families facing annual premium costs of $4,500 and the complexity of decisions about what sort of policy to get, consumers would be wise to take their time about whether to stay with or change funds.

Ms Wells went on to say that the lack of transparency from health funds regarding their premium raises was “not good enough”, as it created more confusion and masked the fact that many premium rises were substantially higher than average.

https://twitter.com/7NewsPerth/status/848486117720506368

AMA To Consumers: “Do Your Homework”

The Australian Medical Association (AMA) also urged Australians to consider their health fund options.

AMA President Dr Michael Gannon said consumers should thoroughly research the various health insurance policies on offer to ensure they got the best possible value and cover.

“Australian families now contribute a substantial proportion of their household income towards private health insurance, so it is important they know exactly what they are getting from their investment,” Dr Gannon said.

“Family budgets are under pressure with cost of living increases, which have been added to with this week’s annual increase in PHI premiums.”

Privately insured Australian families are set to pay an extra $4 per week on average, while typical individuals will be slugged with an extra $2 per week.

Dr Gannon warned consumers against downgrading  to “junk policies” which do not provide the cover patients expect when they need it.

“From the AMA’s perspective, junk policies should not exist at all,” Dr Gannon said.

“We need private health insurance to be simplified, we need it to be more transparent, and we need it to also cover the real costs of treatment – including the theatre fees, equipment, consumables, hospital costs, and staff time.”

Junk Policies: New AMA report reveals the best and worst health insurance funds. #7News pic.twitter.com/3jFFPldwMN

— 7NEWS Adelaide (@7NewsAdelaide) April 1, 2017