Video transcript

55% of Australians have private health insurance. Private health insurance covers your hospital admissions. But which hospital options to choose can be complex and confusing. 

The Government wants to make it easier and fairer for us all. A new system of categorising hospital insurance will be introduced in April 2019.

There will be four tiers of hospital insurance products – Gold, Silver, Bronze and Basic.

The requirements for each tier are actually minimum requirements which means that Insurers can add more to their Silver, Bronze, and Basic tiers. 

So how will these reforms benefit us?

  • They’ll give greater certainty of which hospital services are covered.
  • It will be easier to compare private health funds for the best deal.
  • It will be easier to find a health fund that meets your individual needs.
  • In addition to the new tiers – Prostheses (like hips and knees) and other medical device prices will be reset by the government.
  • Mental health cover can be upgraded without a waiting period.
  • Higher excess levels will be offered for lower premiums – increased to $750 for singles and $1500 for couples or families.
  • Insurers will adopt standard clinical and medical definitions which are easier to understand.
  • Travel and accommodation options will be offered for regional and rural members.
  • Natural therapies will no longer be covered (*see list of what won’t be covered)
  • 10% discounts may now be offered on hospital cover to people aged 18 to 29.

Private Health Insurers have until April 2020 to adopt these changes. Get in touch with your Health Fund to see how these changes will affect you.

*List of natural therapies not covered – Alexander Technique, aromatherapy, Bowen therapy, Buteyko, Feldenkrais, herbalism, homeopathy, iridology, kinesiology, naturopathy, Pilates, reflexology, Rolfing, shiatsu, tai chi, yoga . 

Last Reviewed: 02/04/2019

myDr


References

http://www.health.gov.au/internet/main/publishing.nsf/Content/private-health-insurance-reforms-fact-sheet-gold-gilver-bronze-basic-product-categories