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Health Fund Contribution Rate Increase 2003
Dated: 14 March 2003
Health Fund Contribution Rate Increases 2003
Annual rate increases for the registered private health insurance organisations have now been released. The weighted average rate increase is 7.4% across the industry. There will be variations in the rate increase depending on individual registered organisations and their product mix, claims history and prudential position. Members should contact their registered organisation for more information.
The PHIAC annual report for 2001-02 identifies considerable increases in benefits paid last year. Total benefits increased by 15.8% but some components were significantly higher. For example, prostheses increased by 41% and the gap cover payments increased by 18.3%. The industry lost $60 million last year in meeting these increased claims.
Rate increases receive significant scrutiny. Registered organisations apply to the Department of Health and Ageing for rate increases based on their product mix and claims experience and are required to have actuarial advice. The Department seeks advice from PHIAC on the financial effect of rate increases. PHIAC is required to consider the interests of consumers; aim to minimise rate increases while ensuring the prudential safety of individual registered organisations.
Registered organisations are required to notify members of any rate changes prior to their implementation and will be doing so over the next few days.
About PHIAC
The Private Health Insurance Administration Council (PHIAC) is an independent statutory authority that regulates the private health insurance industry.
For more information please contact: Gayle Ginnane, PHIAC Chief Executive Officer (02) 6215 7999 or 0419 285 313.