Each year on 1 April, health insurers adjust their premiums to account for increases in utilisation and treatment costs. The Department of Health approves these average increases per fund as well as adjusts the rebate tier rates effective 1 April annually based on the Rebate Adjustment Factor. Once this information is shared with health funds, we are able to communicate to our Members what the policy specific health insurance premium will be after the changes take effect.
Below we have addressed some frequently asked questions:
Why do funds report an average increase percentage?
While the approved premium increase rate shared publically represents the average premium increase per fund, this is not indicative of what every consumer may experience. Some products may offer either a lower or a higher increase. We inform Members in writing of the exact premium increase for their particular policy directly and take into account the policy specific premium and rebate to provide this exact amount.
If another funds average increase is lower, will their product price point be lower too?
Even though our increase may be slightly above some funds, it’s important to note that if our base premium (without Australian Government Rebate or Lifetime Health Cover Loading if applicable) is lower, the overall dollar increase for our product may still be lower despite a slightly higher increase.
How is the government rebate calculated?
The Australian Government Rebate on private health insurance provides a financial incentive to assist Australians in affording private health cover. Rebate eligibility is based on a Member/s age and assessable income and the rebate amount will be indexed by CPI (Consumer Price Index) each year. The rebate is available for Australian residents that hold a green or blue Medicare card, and is applicable on both hospital and extras products.
You can choose to claim the rebate automatically through reduced premiums, or claim it back on completion of your annual tax return.
How does Territory Health Fund address affordability issues and increased costs of health care?
We work closely with the Government and our peak industry body Members Health to reduce costs and provide greater benefits for the policyholders of 25 health funds like our own who are ‘putting Members’ health before profit’.