Private health insurance costs the biggest Australian household spending concern

[Mighty AU]

Private health insurance costs have overtaken electricity bills as the biggest household spending worry, according to consumer group Choice's latest quarterly survey of Australian households.

Choice found 82 per cent of Australian households are now concerned about the cost of private health insurance, beating 77 per cent who are concerned about electricity. 

It comes as the private health insurance industry prepares to undergo its biggest changes for decades, which could potentially see some Australians paying more to access the same level of hospital cover. 

From April 1, thousands of existing hospital policies will be consolidated into four tiers — Basic, Bronze, Silver and Gold — each with minimum levels of cover.

"It's to make it easier for consumers to choose between the various packages," Stephen Duckett, the Health Program director at the Grattan Institute, told 7.30.

"At the moment there are so many packages on offer and they have so many different definitions that it's impossible."

...

Other changes also come into effect from April 1

A large range of natural therapies including yoga, Pilates, Feldenkrais, kineseology, homeopathy and naturopathy will no longer be covered by private extras insurance. 

In addition, insurers will also be able to offer:
Discounts for young people aged 18 to 29
Higher excesses of up to $750 per person in exchange for lower premiums
Paying travel costs of people who have to travel long distances to come for hospital treatment

Changes to allow people needing inpatient psychiatric and drug and alcohol services to upgrade cover without serving a waiting period were introduced last year.

Melanie Papworth, the owner of the Pilates and Yoga Shed in Yarraville, Melbourne said she had already had a number of clients tell her they'll have to stop Pilates classes if they are no longer covered by insurance. 

"If they can't get the rebate they simply won't have the funds to continue with their classes," she said.

But the government says there is not enough evidence they work, and excluding them will help to reduce premium increases.

Insurers currently spend around $200 million a year paying out for natural therapies.

Dayanthie de Silva's daughter, Dineshi Fernando, told 7.30 she was considering taking out private health insurance, but likely won't now that some natural therapies will no longer be covered. 

"I most probably need natural therapies like Pilates, yoga," she told 7.30. 

"Why should I buy insurance if they are removing stuff?"

Currently 46 per cent of Australians have private hospital cover and 55 per cent have extras cover. 

Stephen Duckett said he believes the changes are worthwhile to make buying health insurance clearer, but will not increase the numbers of Australians taking it out.

https://www.abc.net.au/news/2019-03-19/private-health-insurance-biggest-household-worry-survey-says/10913092

[🅱️🅰️LLS. ➿]

It's good that bullshit like kinesiology and such are being removed from extras, should really tack on chiro as well though. I don't quite agree that pilates and yoga should be removed, preventative health is excellent to promote and these exercises really do work well.