Private health insurance premiums are set to rise on October 1, an increase companies have delayed for six months due to the COVID-19 pandemic.
But 2020 has been a year like no other. And some of the reasons insurance companies are using to justify this price rise don’t stack up.
These include increasing costs of hospital and health care, more claims, an increase in chronic health conditions, and an ageing population.
At a time when many policy-holders are facing financial stress and many elective surgeries or treatments suspended or delayed, this week’s price rise isn’t justified. With a further price rise already set for April 2021, it would be fairer to delay any fee hike until then.
1. Increasing costs of hospital and health care — false
Costs of hospital and health care paid by private insurers have reduced substantially in 2020, not increased, according to the latest figures from the Australian Prudential Regulation Authority. That’s because many…
— to theconversation.com
