Why your health insurance premium goes up

As a not-for-profit health fund, we do everything we can to give you the best value and most affordable cover

A look at why premiums increase

As a not-for-profit fund, we will always keep premium increases to the absolute minimum necessary to ensure we can continue delivering you high quality cover that remains accessible and provides great value, even as healthcare costs continue to rise.

There are many factors that contribute to increases in the cost of healthcare. Here’s a look at some of them:

Inflated cost of medical devices

Australians have access to one of the best health systems in the world, however new and improved medical technology and treatment options often comes with higher costs.

Private Health Insurers are required to pay benefits for products listed on the Government Prosthesis List provided to a patient as part of hospital substitute treatment.

Of real concern is the inflated price of many items on the Prosthesis List, with Australians paying between 30 and 100% more for prosthetic devices than other countries, including the UK and New Zealand.

There are more than 11,000 products on the Prosthesis List which includes set prices for artificial joints and pacemakers, but also includes items like staples and surgical sponges that should not be considered prostheses.

The exorbitant costs of all these items, which must be paid for by insurers, is having a direct impact on premiums.

While the Government has committed to reforms that will drive down prices, pressure from multi-national medical device companies has stalled promised reforms being implemented.

At Health Partners, we’re actively lobbying for these important reforms to be delivered to shift value away from medical device manufacturers to consumers, so we can continue to offer you affordable health insurance.

Ageing population and the rise in chronic conditions

Australia’s ageing population and the associated rise in incidence of chronic conditions like cancer and heart disease means more and more people are using the health system. While treatment for these often complex medical conditions can be life-saving, they are costly and can require frequent hospital admissions.

Your premiums, including any necessary increases, ensure that we can continue to pay claims for these vital treatments now, and offer peace of mind that you can access treatment quickly and with your choice of doctor, should you need it in the future.

The importance of having Private Health Insurance

Having private health insurance has never been more important. There are some healthcare costs that aren’t covered by Medicare at all and private health insurance policies are designed to cover some or all of those out-of-pocket expenses. It also pays for a range of treatments including COVID-19 hospital-related claims for all members with Hospital cover and importantly lets you access treatment on your own terms

View your cover details

You can view the full details of what’s covered under your policy and your premium (including your rebate entitlement if applicable) at any time by logging in to Members Online.

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