Health insurance premiums are on the rise again… here’s an article from today’s Australian detailing what could happen in the coming months. Now is a better time than ever to compare health insurance policies against others in the market.
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ONE in seven Australians with private health insurance faces a premium increase of up to 27.5 per cent in July under planned changes to the government rebate, according to the industry lobby group.
In a submission to a parliamentary inquiry into the commonwealth’s plan to narrow the scope of the rebate, Private Healthcare Australia has warned that almost 1.1 million members will be adversely affected by changes to Lifetime Health Cover — some of them by up to $500 a year.
The impact of the decision to remove the rebate from Lifetime Health Cover loadings — which apply to those who delayed taking out insurance until later in life — is in addition to the annual premium increases that last year averaged 5 per cent.
That means some premiums are likely to rise by almost a third this year.
“This significant increase in premiums will inevitably result in many people choosing to downgrade health cover or terminate their cover, thereby relying more on the public hospital system for their healthcare needs,” the submission warns.
The Australian last month revealed the government would investigate the trend of people winding back their coverage to cope with rising premiums and also look at whether it should be easier to switch funds to find a better deal.
Delivering the mid-year budget review, Wayne Swan — at the time still vying to deliver a surplus — said the rebate changes would save the government $1.1 billion.
Read More: http://www.theaustralian.com.au/national-affairs/health/private-health-premiums-to-rise-27pc-lobby-warns/story-fn59nokw-1226570348037