Yahoo Finance Private health insurance is changing TODAY – here’s what it means for you
New rules in the private health insurance game are kicking in from today, 1 April 2019 – but nearly half of Aussies who have private health insurance have no idea.
So what’s happening?
The government has introduced a new way of categorising hospital products into ‘Gold’, ‘Silver’, ‘Bronze’ and ‘Basic’ in order to make them easier to understand and compare.
There are also new minimum standards of hospital services to be provided under each tier, and each product in every category must meet that standard.
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How does this affect you?
This means you’ll know roughly what to expect with the level of hospital cover of the product you’re purchasing – for example, all gold policies must cover pregnancy and birth-related services.
But you’ll also be paying more: premiums are rising by an average of 3.25 per cent, which comes to $135 a year for the average family.
For some products, you now have the option to increase how much you pay in excess in exchange for lower premiums.
Good news or bad news?
The reforms spell good news for young Aussies: those under 30 years old may be eligible to get up to a 10 per cent discount on their premiums, depending how old they are.
And if you’re a regional Aussie, some insurers or policies can now cover the cost of any travel and accommodation you require for your in-hospital treatments that you have to travel into metro areas for.
But some natural therapies will also no longer be covered under extras policies. But don’t worry – your remedial massage, Chinese medicine, acupuncture and mythography are safe.
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