'Jaws of death': Health insurance faces its crisis moment

will help lift a participation rate for hospital cover that has fallen from 47.3 per cent in 2014 to just 44.5 per cent as of March this year.

The Australian Prudential Regulation Authority , which regulates private health insurance in Australia and ensures its financial resilience, has signalled its growing concerns about the health of the sector. One part of the problem is the community rating principle which is the bedrock of the entire health sector.Credit:Unlike car insurance, in which individual circumstances determine your insurance premium, the burden of any increase in healthcare costs is shared by all private health insurance members - rather than being dumped on members whose health care needs are more extensive.

Younger Australians who do hold private health insurance are questioning its value, according to the latest data from Roy Morgan, a research firm. Just 43 per cent of 25 to 39-year-olds with private health insurance regarded it as essential compared with 68 per cent of 60 to 69-year-olds."The choice to decline private health insurance cover is driven primarily by cost, and is exercised primarily by younger and healthier people," said the private health insurer's peak body, Private Healthcare Australia in a pre-budget submission this year.

According to Citi's Pittaway, it means that health insurers are not getting the full benefit of the premium rises and means that "for the first time in almost ten years, the growth in average premiums, after coverage downgrading, has fallen to be in line with wage growth".

ColinJKruger If in a fund, there should be no GAP. Fund Medicare properly with a higher levy and if you want to keep PHI then make all health service providers bill the funds directly with a negotiated agreement.Why must consumers do the work ? 😡 GregHuntMP

ColinJKruger . And aged care needs to be strictly not for profit. .

ColinJKruger . There are many older people whose underlying issues (childhood abuse, trauma, financial stress, ANS imbalance, microbiome imbalance) have not been addressed and only the symptoms are being treated. Everyone should have access to free tai chi and chair exercise classes. .

ColinJKruger Gee I hope that they remember that the baby boomers funded their medical costs and their education.

ColinJKruger Premiums increase because health funds are paying for more healthcare. Gov reform around prostheses pricing and restoration of the rebate to 30% for low & middle income earners, will help make cover more affordable for consumers. aushealth

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