Young adults are the main beneficiaries under the Federal Government’s new reform to private health insurance; encouraging more people to join by reducing premiums and creating easier access.
Federal Health Minister, Greg Hunt, announced that a two per cent discount will be offered to people under 30 each year, reaching a maximum of 10 percent, which they are entitled to until they are 40.
The Government is working with private health insurers to decrease premium pressures and pass on the cost savings to consumers.
Dr Dwayne Crombie, BUPA spokesperson, hopes these savings will entice more people to join.
“Health insurance and the cost of healthcare are facing big affordability challenges at the moment so this is a great first start to move in a direction to help make the system more sustainable,”
“We know that over the last couple of years, younger people have not been joining health insurance. If we can offer something very tangible to them if they join before the age of 30, that will give them a head start and I’m sure it will be very welcomed,” he explained.
The new changes require insurers to re-categorise their policies into 4 different tiered packages – gold, silver, bronze or basic, allowing people to make clear and informed choices when joining.
There will also be the option for people to increase their excess – $750 for singles and $1500 for families, in exchange for lower premiums.
But these are just the first steps in the biggest health insurance reform in 15 years.
Opposition Leader, Bill Shorten, said private health insurance has been out of control for years, and has concerns with insurance prices for families and older Australians.
“It doesn’t occur at first glance that the Turnbull Government has given any consideration to relieving the cost pressures to families and people over the age of 30,” Mr Shorten said.