Health insurance cost pain after rules glitch

Health insurance cost pain after rules glitch

By March 29, 2018News

Private health insurance premiums will climb and thousands of members will need legal protection from unexpected tax debts, after an extraordinary ­11-year misinterpretation of ­insurance rules - according to  The Australian .

As Health Minister Greg Hunt yesterday introduced legislation for the first tranche of the Turnbull government insurance reforms, The Australian discovered the urgent need for further amendments to allow for policies with non-compliant benefit restrictions as far back as 2007.

Twelve insurers still offering such policies have been ordered to withdraw them from the market by July 1. While that will mandate a higher level of cover for members with conditions such as mental illness, obesity and joint deterioration, it will come at a cost, contributing to higher premiums from next year.

Finity's Jamie Reid recently spoke to The Australian  about these policy variations and their impact on members.