A leading comparison organisation is calling for Australians to seek more education about private health insurance, on the back of new research that reveals a significant portion of consumers admit to having limited to no knowledge around the Australian Government rebate and private health insurance claiming processes.
Commissioned by Comparethemarket.com.au, the Australian survey of an independent panel of 622 respondents who have private health insurance* found 26%** admitted they were not aware of the Australian Government rebate, nearly 45% do not understand how the rebate works, and 37% were not aware of their rebate amount last financial year. Sixteen per cent admitted they were not aware of the Medicare Levy Surcharge.
In addition, 1 in 3 respondents (32%) admitted they were not aware of private health insurance being subject to means testing, and a further 29% – although they know about the means testing – were unaware of the salary thresholds that determine their level of rebate.
Grant Waldeck, spokesperson at Comparethemarket.com.au, says: “The survey findings suggest that further education around private health insurance needs to be a priority for Australians. A lack of knowledge suggests a good proportion of Australians do not know how to maximise value from their insurance, nor minimise costs. This is a concern with the 6.2% average increase in health insurance premiums to take effect from 1 April. In particular, the findings challenge the general perception that private health insurance is largely used to reduce the Medicare Levy Surcharge.”
The survey also revealed that 60% of respondents have never switched health insurers. When it comes to the workings of their health insurance, just 11% understand Lifetime Health Cover ‘very well’, while 13% don’t understand it at all. Only 20% understand the claiming process ‘very well’.
“It would be naïve to think that more than half of Australians have never switched provider because they’re satisfied with their current premium. The reality is that health insurance is only at the forefront of a consumer’s mind when it’s time to claim. At this point it’s either too late, as the policy doesn’t match the claim, or the consumer realises that they’re not receiving the best value. A more proactive approach is needed when it comes to health insurance in order to secure the most affordable and valuable service,” Grant says.