Private health insurance providers in Australia have significantly increased the benefits paid to members, according to the latest quarterly data from the Australian Prudential Regulation Authority (APRA).
Over the 12 months leading to June 2024, health funds paid more than $18 billion in benefits for hospital stays, reflecting a 7.9% increase compared to the previous year. Additionally, nearly $6.3 billion was allocated to cover extras such as dental, physiotherapy, and optometry services.
The report also shows a notable rise in private health insurance membership. During the June 2024 quarter, nearly 64,000 more people obtained hospital treatment cover, while ancillary cover grew by over 120,000. The most significant uptick was seen among Australians aged 30 to 34, indicating an increasing appreciation of the benefits of private health insurance within this age group.
Matthew Koce, CEO of Members Health Fund Alliance, welcomed the positive trends.
"It is very pleasing to see that the number of people taking out health cover continues to reach new highs in a highly competitive consumer market. The latest data is yet another indication of the enormous benefit and value which private health insurance delivers. Not only does health insurance allow more Australians to access the high-quality care they need sooner, it also eases pressure on the public health system,” Koce said.
He also tackled concerns about the challenges faced by those without health insurance, particularly the extended wait times in the public health system. He suggested that making health insurance cover fringe benefits tax-exempt could reduce dependency on public hospitals and assist more Australians with managing the cost of living.
“This would also help boost productivity by getting more people back to work faster,” Koce said.
For those considering private health insurance, Koce advised looking for the Members Health tick, a symbol that indicates a health fund is committed to prioritizing people over profit while providing the best possible value and care.
