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In Australia, Private Medical Insurers review and communicate rate increases on April 1st each year. Data from the consumer choice website Choice.com suggests the average rate increase we can expect this year will be +2.7% across all providers, which is well below the industry average. It is important to note however that several key providers such as Bupa, Medibank, and GU Health have stated they will either delay any increases to rates or have a very slight increase as part of this year’s rate reviews.
In further good news for businesses and consumers, the Australian Government has agreed to maintain the Private Health Insurance rebate at 2021 levels, rather than the expected decrease in percentage terms.
A key reason for low rate increases this year is that during the peak of COVID-19, we saw hospitals cancel or delay elective surgery. In addition, lockdowns and COVID-related concerns meant members were not utilising their extras cover for treatments (e.g., dental, vision, and physiotherapy) at pre-pandemic levels. This resulted in increased profits for health providers who are now looking to pass some of the savings back to consumers through delayed or limited rate increases.
Employer-funded Group Private Medical cover continues to be a highly effective tool in attracting and retaining the best talent in what is an increasingly competitive market.
Feel free to reach out at any time to understand how a Corporate Private Medical Plan can work for your business. We can provide an obligation-free review and assessment and answer any questions you may have.
Head of Sales – Employee Benefits
