Client Alert: Major reforms to private health insurance industry
On 13 October, the Australian Government announced the most significant and wide-ranging reforms to the private health insurance industry in over 15 years. These reforms will affect private health insurance members across the board, as well as employers who subsidise their employees’ health insurance premium.
Key changes include:
• Discounted premiums for members who join before they turn 30
• A reduction in the cost of prosthesis for private health insurers
• The introduction of Gold, Silver and Bronze product categories
• The removal of the government rebate on some “natural therapies”
• The removal of waiting periods for benefits on pre-existing mental health conditions when upgrading membership
• An increase in the maximum excess/ deductible allowable for hospital cover
The sweeping reforms follow commitments from the federal government to address the rising cost of private health insurance premiums, which has greatly outpaced CPI over recent years.
Download the Client Alert to read more.