Private health insurance set for shake-up

Stefan Postles via Getty Images

Modelling commissioned by the Private Health Insurance Ministerial Advisory Committee showed removing "basic" cover would increase premiums by between 15 and 21 per cent and result in more than 100,000 people dropping their cover.

Australians with private health insurance are being promised cheaper premiums and easier access to mental healthcare under a raft of new measures.

Once Australians turn 30, they are penalised and extra 2 per cent for every year after 30 that they don't have private hospital cover, meaning that it's a lot more expensive to take out later in life. Premiums have now jumped by an 5.6% annual average since 2010.

Mr Hunt believes the move will encourage young people to take up private health insurance while helping other policyholders.

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

The Government will also take alternative therapies like homeopathy and reflexology, as well as yoga, off the list of items covered, while the waiting period for mental health services will be scrapped.

Health insurance products will be categorised into four levels of cover - Gold, Silver, Bronze and Basic - to help consumers understand what types of services their insurance buys.

But it's expected a cut to the price insurers must pay for some medical devices will drive the biggest reduction in premiums.

"The biggest problem in the affordability of private health insurance is the amount that's going into the pockets of the for-profit insurers", he told ABC radio. The Australian Medical Association has called for the "junk" policies to be banned.

"The mental health safety net is an important first step, but the work the minister has foreshadowed to reduce low-value day care admissions and other low value care is also critically important", he said.

It also plans on generating savings of at least $300 million per year by mandating price cuts for procedures including replacement hips and pacemakers.

"We are pleased that the minister for health has listened to the concerns of the private health insurance industry and acted to place the interests of consumers before the profits of large worldwide medical device manufacturers", he said.

"The goal must be to bring the price insurers are charged for prostheses down to parity with the public sector".

Those choosing to get health insurance between the ages of 19 and 29 will earn themselves a 2% discount on their premiums, up to a maximum of 10%.

"My hope is that we'll have the lowest premium changes in over a decade", he said.

The Australian Prudential Regulation Authority will be tasked with ensuring every dollar offsets premium rises in 2018.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.

Related News:

  • Host Hotels & Resorts Inc (NYSE:HST) Sentiment Change Report

    Gsa Cap Prns Limited Liability Partnership has 0.05% invested in Host Hotels and Resorts Inc (NYSE:HST) for 45,101 shares. Kentucky Retirement Systems Tru Fund holds 0.07% or 20,259 shares in its portfolio. 145,662 are owned by Invest Advsr Lc.

    Can Corporate Office Properties (OFC) Go The Extra Mile?

    Price T Rowe Assocs Inc Md holds 0.01% of its portfolio in Corporate Office Properties Trust (NYSE:OFC) for 1.69 million shares. On average, equities research analysts expect that Corporate Office Properties Trust will post $0.75 EPS for the current year.

    Notable Stock Analysts Ratings Eldorado Gold Corporation (EGO)

    Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend. It represents a security's price that, if achieved, results in a trader recognizing the best possible outcome for his investment.
  • Institutional Investor Sentiment About Estee Lauder Companies Inc (NYSE:EL) Up

    It is positive, as 48 investors sold EL shares while 192 reduced holdings. 83 funds opened positions while 207 raised stakes. Linscomb & Williams Inc reported 2,969 shares or 0.03% of all its holdings. 2,945 are held by Rampart Invest Management Ltd.

    Stock's Stunning Activities: Sanchez Energy Corporation (SN)

    Cubist Systematic Strategies, LLC downsized its stake by selling 77,433 shares a decrease of 82.3% from 03/31/2017 to 06/30/2017. Tyrus Capital S.A.M. bought a new position in Sanchez Energy Corp during the first quarter valued at approximately $10,494,000.

    Clemson's Dabo Swinney to attend celebration of Alabama 1992 title, per report

    Swinney was born in Birmingham, and later coached Alabama as an assistant from 1993-2000. At that point, Swinney was named interim head coach and later full-time head coach.
  • All Sturgis homecoming activities canceled

    All Sturgis homecoming activities canceled

    School officials condemn the apparent reference to Sturgis Brown's football homecoming opponent Pine Ridge High School. It's not uncommon for schools to sponsor some sort of "Car Smash" event as a fundraiser during homecoming week.
    Amy Jackson's stunning look from Rajinikanth, Akshay Kumar film revealed

    Amy Jackson's stunning look from Rajinikanth, Akshay Kumar film revealed

    Resul Pookutty is the sound engineer while John Hughes and Walt Jones are in-charge of creating the visual effects. It is directed by Shankar, who also directed the first movie "Robot" with Rajinikanth and Aishwarya Rai Bachchan.
    Crescent Point Energy (CPG) Given Coverage Optimism Rating of 0.17

    Crescent Point Energy (CPG) Given Coverage Optimism Rating of 0.17

    Foster & Motley Inc decreased International Paper Co (NYSE:IP) stake by 12,001 shares to 80,818 valued at $4.58 million in 2017Q2. Investors sentiment decreased to 0.65 in 2017 Q2. 1 have given the stock a Hold rating , 0 as Underperform and 0 as Sell.
  • Scott Brown labels Gordon Strachan's Scotland exit a 'sad, sad, sad day'

    Scott Brown labels Gordon Strachan's Scotland exit a 'sad, sad, sad day'

    Strachan paid tribute to Scotland's fans' "unwavering support" and thanked his back-room staff and "everyone at the Scottish FA". And the players should be given enormous credit for the resilience which came back from a hard start.
    Here is What Institutional Investors Think About Delphi Automotive PLC (NYSE:DLPH)

    Here is What Institutional Investors Think About Delphi Automotive PLC (NYSE:DLPH)

    News stories about Delphi Automotive PLC (NYSE:DLPH) have trended somewhat positive recently, AlphaOne Sentiment Analysis reports. The institutional investors in our partner's database now hold: 249.87 million shares, up from 242.86 million shares in 2017Q1.

    Transocean Inc (NYSE:RIG) Institutional Investors Sentiment Increased in 2017 Q2

    Ameritas Inv Prns reported 0% in Transocean LTD (NYSE: RIG ). 39,084 are held by Regentatlantic Cap Ltd Liability Corporation. Narrowing in a bit closer, the 5 month price index is 0.92549, the 3 month is 1.28234, and the 1 month is now 1.21724.


Most liked

BioDelivery Sciences International, Inc. (NASDAQ:BDSI) Files An 8-K Other Events
Grandeur Peak Global Advisors LLC lifted its stake in shares of BioDelivery Sciences International by 5.9% in the 1st quarter. Forest Hill Capital Llc increased First Horizon Natl Corp (FHN) stake by 17.51% reported in 2017Q2 SEC filing.

Healthcast : A Study on Omega-6 Fats & Type 2 Diabetes
The researchers combined data from 20 studies involving 39,740 adults from 10 countries. As a result, blood glucose levels become too high.

Major Analyst Actions Under Review: Altria Group, Inc. (MO), Banco Santander, SA
The company reported $0.73 earnings per share (EPS) for the quarter, missing the Zacks' consensus estimate of $0.74 by $0.01. BidaskClub raised shares of Altria Group from a "buy" rating to a "strong-buy" rating in a report on Wednesday, June 21st.

Study puts a count to suffering people in need of palliative care
Some 2.5 million children are among the annual count of almost 26 million who die without adequate relief, the team calculated. In Afghanistan, India and Nigeria, for example, less than 5 percent of pain management needs are met, according to the report.

MGIC Investment Corporation (NYSE:MTG) Closed Higher Than Its 50 Day Average
MGIC Investment Corporation (NYSE:MTG) last announced its earnings results on Thursday, July 20th. (NYSE:MTG) for 6.55M shares. Citigroup Incorporated invested in 0% or 82,719 shares. 67,746 were accumulated by Alliancebernstein Limited Partnership.

Trader Alert: Unusual Volume Spotted in Flexion Therapeutics, Inc. (NASDAQ:FLXN)
This is one of the most popular methods investors use to evaluate a company's financial performance. (NasdaqGM:FLXN) is -0.532154. Many analysts have provided their estimated foresights on Flexion Therapeutics, Inc . (NasdaqGM:FLXN)'s ROIC is -2.772065.

Sasikala back to city prison
Though Sasikala did not participate in any political activity, her visit to the city triggered reactions in political circles. Sasikala was granted emergency parole from October 7 to 11.

Financial Update of Johnson & Johnson (NYSE:JNJ)
In other news, VP Paulus Stoffels sold 102,692 shares of the company's stock in a transaction that occurred on Monday, July 24th. It dropped, as 14 investors sold UHAL shares while 74 reduced holdings. 111 funds opened positions while 598 raised stakes.

EPS for Tupperware Brands Corporation (TUP) Expected At $0.94
Tupperware Brands had a net margin of 10.10% and a return on equity of 117.25%. 4,955 were reported by Meyer Handelman Company. The insider Poucher Nicholas K . sold $96,950. 2,950 shares valued at $211,191 were sold by HAJEK JOSEF on Friday, June 9.

Congress sweeps Nanded civic polls
He said MIM helped BJP win several elections by dividing the secular votes. Congress is in power in Nanded since its foundation. The numbers in bracket are of 2012 elections.

Kindergarten teacher missing after bailing out known felon
On Saturday, Tucson police contacted Malzahn when they received reports of credit card theft at the Tucson Mall. Investigators have questioned Malzahn who won't reveal information about the missing teacher's whereabouts.

Kimco Realty Corporation (KIM) Earns "Hold" Rating from Mizuho
Currently, 424.09 million total shares are owned by the public and among those 414.29 million shares have been available to trade. The company maintains a Baa1 rating from Moody's Investor Service and a BBB+ rating from Standard & Poor's Financial Services.

Price Target Estimates for Alibaba Group Holding Limited (BABA)
Maximum and minimum EPS estimate for the current quarter is projected at $5.07 and $3.76, respectively, according to 23 analysts. Mckinley Carter Wealth Services has invested 0.97% of its portfolio in Hormel Foods Corp (NYSE:HRL). (NYSE:CBL) or 1,000 shares.

American Financial Group Inc (NYSE:AFG) Institutional Investor Sentiment Is 1.51
The fund owned 20,523 shares of the insurance provider's stock after buying an additional 4,417 shares during the period. One investment analyst has rated the stock with a hold rating and four have issued a buy rating to the company's stock.

(CVS) With Shares Trading down at $73.90 CVS Health Recognizes its 30000…
CVS Health Corporation, launched on August 22, 1996, together with its subsidiaries, is an integrated pharmacy healthcare company. Out of 4 Wall Street analysts rating Mead Johnson Nutrition, 0 give it "Buy", 1 "Sell" rating, while 3 recommend "Hold".