Why your health insurance premium goes up

A look at why premiums increase

As a not-for-profit fund, we will always keep premium increases to the absolute minimum necessary to ensure we can continue delivering you high quality cover that remains accessible and provides great value, even as healthcare costs continue to rise.

There are many factors that contribute to increases in the cost of healthcare. Here’s a look at some of them:

Inflated cost of medical devices

Australians have access to one of the best health systems in the world, however new and improved medical technology and treatment options often comes with higher costs.

Private Health Insurers are required to pay benefits for products listed on the Australian Government's Prescribed List of Medical Device and Human Tissue Products ('prescribed list') provided to a patient as part of hospital substitute treatment.

Of real concern is the inflated price of many items on the prescribed list, with Australians paying between 30 and 100% more for medical devices and human tissue products than other countries, including the UK and New Zealand.

There are more than 11,000 products on the prescribed list which includes set prices for artificial joints and pacemakers, but also includes items like staples and surgical sponges that should not be considered medical devices and human tissue products.

The exorbitant costs of all these items, which must be paid for by insurers, is having a direct impact on premiums.

While the Government has committed to reforms that will drive down prices, pressure from multi-national medical device companies has stalled promised reforms being implemented.

At Health Partners, we’re actively lobbying for these important reforms to be delivered to shift value away from medical device manufacturers to consumers, so we can continue to offer you affordable health insurance.

Ageing population and the rise in chronic conditions

Australia’s ageing population and the associated rise in incidence of chronic conditions like cancer and heart disease means more and more people are using the health system. While treatment for these often complex medical conditions can be life-saving, they are costly and can require frequent hospital admissions.

Your premiums, including any necessary increases, ensure that we can continue to pay claims for these vital treatments now, and offer peace of mind that you can access treatment quickly and with your choice of doctor, should you need it in the future.

Premium increases vary from product to product

Health Partners’ premiums are adjusted relative to the costs associated with providing each individual policy. This means the amount your premium increases depends on your policy and may be above or below Health Partners’ average premium increase.