Private health premiums set to rise

Originally posted by eagle888 ↑

Hi Jantimot the system you describe is what applies in the USA, however in Australia its different.

We have different products but ones age does not come into it. If a 50 year old obtains the same identical hospital cover as a 20 or 30 year old I believe there is no distinction in the premium paid.

Below is some substantiation for that from Private Healthcare Cover Australia:

"Australia’s private health insurance model, which boasts community rating as one of its key features and represents international best practice. Community rating facilitates affordable access to private health care for all Australians. It means that everyone pays the same premium for their health insurance and health funds are prevented from discriminating against members on the basis of health status, age or claims history.

Under the provisions of the Private Health Insurance Act 2007 in Australia, health insurers are prohibited from charging a premium based on a person’s state of health or history of claiming. This system is called Community Rating.

Community Rating was developed by the Government to make sure that people with a higher level of claims are not disadvantaged – for example, if you have a history of health issues, this does not mean you should pay a much higher premium. Private health insurance is there to cover everyone, whether you have a health condition or not.
Community rating means that everyone is entitled to buy the same product, at the same price, and is guaranteed the right to renew their policy. A health insurer cannot refuse to insure you, or refuse to sell you any policy you may wish to purchase. There are some exceptions to this – for example, you will pay a higher premium if you have a Lifetime Health Cover loading.

For example, a single, healthy 20 year-old and a single, unwell 60 year-old will both pay the same premium for the same cover. However, the cost of premiums for similar cover may vary between insurers.

https://www.privatehealthcareaustralia.org.au/private-health-insurance-community-rating-system/

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Under the provisions of the Private Health Insurance Act 2007 in Australia, health insurers are prohibited from charging a premium based on a person’s state of health or history of claiming. This system is called Community Rating.

The Health Funds did manage a win with the provision to add a "loading" to a premium to anybody who doesn't take out Private Health cover prior to turning 30....

There is a serious problem that is only going to worsen as more people exit Private Health cover due to affordability.

One the one hand there are hues and cries about the Public System with waiting times etc being too long. In my opinion "thems the breaks"...if you want to rely on the tax payer to pay for your health needs then join the queue.

If one has Private Health cover then we are able to book ourselves into a Hospital when convenient to undergo treatment if needed.
That's the benefit...but the downside is we do have to pay the "difference" between the scheduled fee and the Private Cover rebate...and often anaesthetist fees are not covered, another out of pocket expense....where as if you were to wait on the Public System there is no costs to you at all.