More than three-quarters of Aussies struggling to meet private health insurance cost

New figures show that more than three-quarters of Aussies struggle to pay for their private health insurance. Seventy-seven percent of those with private health insurance are struggling to meet the cost of their policies, according to data released by consumer group Choice based on a poll of 1,029 Australian households and fieldwork.

When it comes to cost-of-living expenses, private health insurance is considered the second greatest concern behind electricity.

Choice spokesperson Tom Godfrey said that the new data reflects what people feel, stressing that a number of people want private health insurance. He pointed out that the sad fact, however, is that it is only becoming unaffordable.

Private health costs are expected to rise from next month. The average price rise is expected to be at 3.95 percent, but Choice believes the increases will be higher for some policies.

“We’re seeing people dropping out of the private system, and our research has shown that that is because it’s too expensive,” Godfrey said.

Bupa, one of the country’s biggest insurers, recently announced changes to the services it would fund. The announcement sparked fears that it would lead to the Americanisation of Australia’s health system.

AMA President Dr Michael Gannon said that Bupa’s new arrangements undermine the role of the doctor in providing and advising the most appropriate care. It could reportedly drive up out-of-pocket costs for patients. Bupa, however, said that its intention is to ensure customers are not charged out-of-pocket costs.

Previously, figures released by Choice show that around 70 percent of those without health insurance have cited cost as a factor why they opt to stay out of the market. Amid concerns about the private health insurance system, the federal government introduced reforms to parliament on Wednesday.

Allowing discounts for hospital coverage for people under 30 is reportedly part of the reforms. The Guardian reports that the reforms will also include allowing private health insurers cover travel and accommodation costs for rural and regional Aussies attending health services.

Under the legislation, private health insurance providers will be allowed to increase customer excesses in exchange for lowering premiums for the first time since 2001. The increased excess would be at $1,500 for couples and families. News.com.au reports that the federal government approved an increase to health insurance premiums that will see costs rise by nearly $150 per year for most families starting April 1.