In response to customer feedback, Australia's largest health fund Bupa will remove some services from its so-called 'minimum benefits' to reduce insurance costs, effective July 1, it has been announced.
The move, which is set to impact 35% of Bupa's clients, was made following feedback from customers that “has shown the value of ‘minimum benefits’ (restricted cover) included in their health cover were not clear.”
Minimum benefit refers to the lowest amount that a health insurer is required to pay for a hospital admission that is included on policy.
“To help keep premiums as low as possible,” Bupa will be “changing most services from 'minimum benefits’ (restricted cover) to exclusions and redistributing that money into a lower premium increase and additional benefits such as introducing gap free dental care on a number of common preventative dental services at selected dentists.”
The changes would not include services for psychiatric, rehabilitation, and palliative care.
Bupa said customers with the basic hospital cover since before March 1 who would like to retain any of the services in their policy will have their hospital waiting periods waived if they upgrade their cover by July 1.
