Each year on 1 April, health insurers adjust their premiums to account for increases in utilisation and treatment costs. The Department of Health approves these average increases per fund as well as adjusts the rebate tier rates effective 1 April annually based on the Rebate Adjustment Factor. Once this information is shared with health funds, we are able to communicate to our Members what the policy specific health insurance premium will be after the changes take effect.
Below we have addressed some frequently asked questions:
Why do funds report an average increase percentage?
While the approved premium increase rate shared publically represents the average premium increase per fund, this is not indicative of what every consumer may experience. Some products may offer either a lower or a higher increase. We inform Members in writing of the exact premium increase for their particular policy directly and take into account the policy specific premium and rebate to provide this exact amount.
Why do health funds increase their premiums?
Premium increases occur as a direct result of increases to the cost of hospital charges, treatment fees and utilisation of the services.
If another funds average increase is lower, will their product price point be lower too?
Even though our increase may be slightly above some funds, it’s important to note that if our base premium (without Australian Government Rebate or Lifetime Health Cover Loading if applicable) is lower, the overall dollar increase for our product may still be lower despite a slightly higher increase.
How is the government rebate calculated?
The Australian Government Rebate on private health insurance provides a financial incentive to assist Australians in affording private health cover. Rebate eligibility is based on a Member/s age and assessable income and the rebate amount will be indexed by CPI (Consumer Price Index) each year. The rebate is available for Australian residents that hold a green or blue Medicare card, and is applicable on both hospital and extras products.
You can choose to claim the rebate automatically through reduced premiums, or claim it back on completion of your annual tax return.
Why does the rebate reduce yearly at the same time premiums increase?
From 1 April 2014, the rebate contribution from the Australian Government has been calculated based on a Rebate Adjustment Factor. The Rebate Adjustment Factor is determined using a formula which considers growth in the Consumer Price Index (CPI) and the industry weighted average premium increase.
There has been no adjustment to the rebate since April 2021 and there will be no adjustment effective 1 April 2023.
How does Territory Health Fund address affordability issues and increased costs of health care?
We work closely with the Government and our peak industry body Members Health to reduce costs and provide greater benefits for the policyholders of 25 health funds like our own who are ‘putting Members’ health before profit’.
Can I lock in my current premium, and how do I do this?
Yes, Members have the option of pre-paying their premiums to take their paid-to-date up to two years in advance, and if this payment is received through our Contact Centre by 31 March 2023, the premium payable will be based on your current premium rather than the increased premium effective from 1 April 2023.
Payments can also be accepted through Online Member Services or through the Mobile App.
Are there ways to save on my health insurance premiums?
It might be time for a cover review. We have a selection of cover options to suit different needs and budgets. To make sure you are covered for what matters most, you can review our cover options online, or you can get in touch with our friendly team on 1800 623 893 to make sure you’re on the right cover for you.
We also offer a generous pre-payment option allowing you to lock in your current premium up to two years in advance. Payments can be accepted through Online Member Services, the Mobile App, or by calling 1800 623 893.