Great News Today For Anyone With Private Health Insurance

Health funds will provide cover for unexpected mental illness under the Federal Government changes

Health funds will provide cover for unexpected mental illness under the Federal Government changes

For those under 30 who have never had private health insurance, a 2 per cent discount on their premium for every year before they turn 30, capped at a saving of 10 per cent, is on offer.

He claims it's the biggest private health insurance reform in 15 years and is just the first round.

Rather than an annual premium rise of 5-6 per cent next April, as has been the case for several years, the plan is aimed at keeping premium rises as low as 3 per cent.

The government is attempting to arrest falling private health insurance levels among under 30s, which would also help prop up the heavy demand from an aging boomer generation.

That discounted rate would remain until they are 40, after which it would be phased out.

The changes will also cut off government rebates for a range of homeopathic and so-called "natural" therapies, including reiki, reflexology, yoga and Pilates. They will now be categorised into four levels of cover, Gold, Silver, Bronze and Basic, which is created to make it easier to work out which product is right for you.

Hunt said an agreement with makers of hip and knee prostheses and cardiac devices would save insurers about $1 billion over the next four years.

Bupa health insurance managing director said Dr Dwayne Crombie said the changes will make private health insurance more appealing and affordable. The Australian Medical Association has called for the "junk" policies to be banned.

Dr Crombie also praised the focus on mental health and the medal-style ratings system for policies.

The government also said the private health cover reforms would make mental health services easier to access.

Matthew Koce, CEO of peak body HIRMMA, representing 24 not-for-profit and member-owned health funds, said prostheses accounts for around 14% of the cost of an average hospital policy. "This certainly won't impact the core value of HBF health insurance and we support the principle that benefits should be provided for clinically proven services", he said.

Young Australians are being targeted in a massive health insurance shake-up.

Young Australians who sign up to private health cover will benefit from discounts on their premium under sweeping Turnbull government reforms created to entice more young people into the system and slow the rising cost of health insurance.

"We want to get the absolute lowest outcome".

The government signs off on premium increases as the regulator.

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"These are matters for the private sector, but they have guaranteed that they will pass through every dollar", Hunt said.

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