As health insurance price hike double the rate of inflation looms close, a panel of experts and economists surveyed by a comparison website has cited the removal of both natural therapies and risk equalisation laws as potential cost-cutting measures.
In its latest
finder.com.au RBA survey, the comparison website said all 30 members of its panel have correctly predicted that a cash rate hold will be implemented, with one in five saying that the central bank may potentially increase rates by smaller increments this year than the traditional 0.25% enforced in previous years.
When asked about the planned increases to health insurance premiums, as well as which reforms would significantly impact affordability, five in 11 panelists said removing natural therapies from policies would have the largest impact on affordability, while three said scrapping the 10% discount for Australians under 30 would have a positive effect, Finder.com.au said.
“Many Australians don’t realise they are covered for natural therapies as they are packaged up with other extras such as dental or optical,” said Graham Cooke, insights manager at finder.com.au. “Removing non-clinically proven therapies such as homeopathy and reflexology could reduce premium costs across the board.”
Meanwhile, 27% of the panel held that what would make health insurance more affordable overall is to remove the risk equalisation policy – a policy which Cooke explained “means insurers in Australia cannot penalise a policyholder for being at a higher risk of illness.”
“With this rule in place, health insurance is as affordable for the elderly as it is for younger people,” Cooke said. “Eliminating this policy would mean cheaper insurance for some, but could also mean more expensive insurance for the most vulnerable people in society.”
Reform to boost competition, copayments, and self-funding were also cited as ways to boost policy affordability,
Finder.com.au reported.
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