25th February 2011
Private health insurance price rise means time to reassess for 1.9 million1 Australians
Results of an iSelect poll2 (completed in the last week) show a quarter (25%) of Australians with private health insurance are very likely to reassess their cover as a result of the price increase announced today.
The national poll, commissioned by iSelect, provides a snapshot of the current financial situation of the average Australian (currently holding private health insurance), and the impact rising prices, such as health insurance, will have on their household budgets. The findings show Australians are feeling the pinch financially, as the Federal Government today announced a 5.57% average increase in health insurance premiums.
According to Paul Cross, iSelect's General Manager of Corporate Affairs, private health insurance is one rising cost that Australians can do something about. He actively encourages Australians to now consider their options carefully.
"The 5.57% announced today is the average increase consumers can expect – so in reality, some will end up paying more.
"In addition, people need to be aware the price range between similar policies can be substantial, often hundreds of dollars a year, making it all the more important that people shop around and understand their options.
"More than 10 million Australians of all ages are currently covered by private health insurance3. It's one of the most important investments we make during our lifetime. It provides peace of mind and access to medical treatment when you need it. In addition, if you earn over $77,000 per year, you'll pay an extra 1% in tax if you don't have private health insurance.
"Australians have choices when it comes to private health insurance – by shopping around using a comparison site, they will be able to better ensure they have a policy that suits their needs and their budget," he said.
Other key findings of the poll include:
- Two thirds (66%) say the cost of private health insurance has a significant impact on their household budget;
- More than a third (36%) are not sure they are getting value for money from their private health insurance;
- An overwhelming 97% are concerned about rising household costs overall; and
- Over half (58%) reporting they are either 'on a financial knife-edge' or 'money is tight'.
"This poll shows that the majority of are concerned about rising prices and are really feeling the pinch, and there is also a lack of confidence in value. Now is the time to review your insurance, and make sure you have a policy that suits your actual needs and budget," he concluded.
Australians keen to get a better deal on their insurance should visit www.iselect.com.au or phone 13 19 20.
1 The poll showed 25% of Australians aged 18-60 with private health insurance are very likely to reassess their/their family's need for cover as a result of a price increase. 10,064,043 Australians have private health insurance (see footnote 3), 7,925,768 of whom are aged 0-60 years.
2 Research methodology: This research was conducted by StollzNow Research (14-18th February 2011) among 1,003 Australians nationally (18-60 years old) who currently have private health insurance.
3 10,064,043 Private Health Insurance Administration Council Quarterly Statistics report, Sept 2010.
