Several legislative reforms have been announced by the Australian Federal Government which reduce the price of premiums paid by private health customers and also impact private health insurance.
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The Australian government has implemented a number of changes to the way private health insurance operates in the country in order to encourage Australians to be part of the private healthcare system. The aim of these reforms is to reduce premiums, simplify the health insurance market and create incentives for young individuals to enroll in health care plans. These reforms will be effective from 1st April 2019.
The new changes will particularly target young Australians, with reforms directed at making private health insurance more affordable and appealing for individuals under the age of 30 years.
Discounts are part of the incentives provided to young customers who enroll for private hospital cover before they turn 29. People who enroll into a private health plan from the age 18 to 29 will get an annual discount of up to 2% on their premiums, every year they are signed up for private hospital cover for a maximum of 5 years.
Simplified coverage categories
Most people are confused with private health insurance, because many complicated options are available for various types of coverage, plus a lot of jargon is used to describe different types of coverage and health plans.
The new legislative reforms aim to simplify the health plans, by specifying four main types of coverage:
- basic level health coverage
Premium private health cover is provided in gold coverage, while basic plans cover the fundamentals of health care. However, with all plans simplified into these generalized labels, consumers will find it easier to explore their options and decide the best plan to invest in.
Mental health treatments
The health insurance changes have removed some of the obstacles which consumers come across when seeking for mental health treatments, such as the limitations placed on policy-holders for the sessions and amount of mental health treatments they can claim.
Moreover, the cost of appointments with mental health care professionals is very high for many young Australians. Therefore, young individuals who may otherwise be in good health will particularly benefit from affordable and improved mental health care.
The aim of these health insurance changes is to make private health insurance better value for young people, and encourage them to enroll in a private health insurance plan.
For Australians seeking to get the best private health insurance plans, iSelect – Health Insurance Australia provides a comparison on the market and helps them find the best deals that meet their requirements.
As Australia’s Life Admin Store™, iSelect helps customers take care of some of life’s most important purchase decisions. They are proud of the service they provide to the millions of Australians who seek expert advice each year. With plenty of partners and hundreds of policies, plans and products, iSelect gives customers the confidence to make the right call on the things that matter most.
Their dedicated departments cover all of life’s essentials, from choosing the right health insurance, life insurance, obtaining a car insurance quote to a home loan comparison. iSelect can help customers with electricity providers, broadband connections, and even take care of travel insurance.
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