Media releases
Media Statement - For immediate release
23 June 2008
CALLING 31 YEAR OLD’S - 7 DAYS LEFT TO ACT!
Australia’s largest health insurance advisory service, iSelect, has today warned that a number of consumers about to be affected by Lifetime Health Cover (LHC) may be unaware of the loading penalty that will lock them into higher health insurance premiums. Under LHC, for most Australians, if they turn 31 this financial year they will start to incur a 2% loading on their health cover each year unless they take out private hospital cover by 30 June 2008.
LHC is a Government initiative introduced in July 2000. It is designed to encourage people to take out private health insurance earlier in life, and to maintain their cover. iSelect’s General Manager for Corporate Affairs, Rohan Martin, said that come 30 June a number of Australians caught by LHC may not realise that unless they act they will be forced to pay more for health cover than they otherwise need to.
“iSelect estimates there are in excess of 200,000 Australians without private health insurance who will have turned 31 during this financial year.”
“Our message is don’t become one of the 60,000 Australians each year who take out private health insurance and are forced to pay more than they need to.” Someone who has not had cover before and takes out Private Hospital Cover aged 42 may end up paying an extra 24%. On an average family policy, this could amount to an additional $400 or more per year over 10 years. “
Rohan added, “iSelect speaks with many customers who simply don’t know about LHC and its implications for the family budget when they come to take out private health insurance. “
“People also can be surprised to learn that if they are 31 and take out hospital cover before 30 June and stay covered, they will not have any loading penalty added to their premium”.
“We encourage people to double check their circumstances and to not get caught out”.
ENDS
For interviews, please call:
Rohan Martin, iSelect, on 03 9276 8208 or 0417 311 602
Background to Lifetime Health Cover
Lifetime Health Cover was introduced in July 2000 and involves a penalty for people aged over 30 who do not hold private health insurance hospital cover.
For each year over 30, a 2% loading (cumulative) is added to the cost of the private health insurance premium up to a maximum of 70%. Those born before 1 July 1934 are exempt from the penalty.
As a new citizen or permanent resident of Australia, if you are aged 31 or over, you will not have to pay a LHC loading if you take out hospital cover within 12 months of being registered for Medicare.
The loading penalty does not apply forever. It is removed after private hospital cover has been held for a period of 10 continuous years.
Example Lifetime Health Cover loadings:
| Age | Loading | Age | Loading |
|---|---|---|---|
| 0 - 30 | Nil | 35 | 10% |
| 31 | 2% | 40 | 20% |
| 32 | 4% | 50 | 40% |
| 33 | 6% | 60 | 60% |
13 May 2008
Budget Provides No Major Movement in Australia's Hospital Queues
Australia’s largest health insurance advisory service, iSelect, has questioned whether the
Federal Budget has addressed the systemic problem of hospital waiting queues in
Australia.
CEO Damien Waller said that while the injection of funds to the public health system was
welcomed, he warned it was not enough to cover the likely influx of new patients to make any real impact.
“Because of the concurrent changes to the Medicare Surcharge Levy, we could
conservatively expect an influx of around 150,000 additional patients into the public health system annually.
“As Australians move from the private system, it will effectively negate the impact of the
additional funding provided in the Budget.
“And this number is only going to worsen as private insurance premiums increase and
more people reconsider their options,” Damien said.
“We concur with the Government’s policy to increase the Medicare Levy Surcharge
thresholds.
“However, the doubling of the surcharge for singles has gone above the required
indexation and negates the necessary injection of funds to improve Australia’s public
health system.
“In fact, the 9.4 million people with private hospital cover should feel concerned by the
apparent fundamental shift away from Australia’s commitment to a robust public and
private health system mix,” he added.
“Given the range of tax cuts and other relief delivered to help working families, we question why the Government would need to implement such fundamental changes to the surcharge and put Australia’s public and private system mix into question.”
For interviews, please call:
De-Arne Carr, on 03 9827 9933 or 0419 585 711
Rohan Martin, iSelect, on 03 9276 8208 or 0417 311 602
12 May 2008 - Changes to Medicare Surcharge likely to impact all Australians
Media Statement - For immediate release.
iSelect, Australia’s largest health insurance advisory service, warns that changes to the Medicare Levy Surcharge could have a significant impact on Australia’s health care system.
CEO Damien Waller said the Government’s decision appears to have ignored the fundamental role the surcharge plays in not only encouraging people into private health insurance, but helping to reduce the pressure on an overloaded public system and to help fund Medicare.
“It’s important to realise that changes to the surcharge will impact both private and public patients. “We estimate, in the absence of other information, that the change in the surcharge will mean there will be an annual shortfall of about $350 million to help fund Medicare next year, with significant flow-on affects for future years. It is also likely to have some inflationary impact on the economy,” Damien said.
“There are currently around 9.4 million Australians with private hospital cover, and any reduction in this number will mean that fewer people will share the cost of private health insurance, ultimately meaning private health insurance premiums will escalate.
“For public patients, the over stretched system is likely to get a lot worse in the immediate future. Even with a major injection of funds, it is difficult to see how health infrastructure and resources will be able to respond quickly enough.”
In Australia, more than 25,000 people are waiting longer than one year for elective surgery. There are some cases where the average wait for shoulder and elbow surgery is 101 weeks, while the wait for hip replacements has been 70 weeks. He cautioned Australians to take a longer-term view of their health care needs, as they could be worse off if they make a knee jerk reaction to the change in the surcharge.
Damien said many people would be significantly out of pocket if they need treatment or their choice of doctor at a time when they required it and are not privately covered.
Contact:
Rowan Martin: (03) 9276 8208 | 0417 311 602 | rmartin@iselect.com.au
About iSelect:
iSelect is Australia’s number one service to compare and purchase private health insurance, helping Australians take the guess work out of buying the right cover. Consumers can receive a free review of their health insurance needs by calling one of our trained staff, or by logging onto our website at a time that is most convenient for them.
A health cover review includes:
- analysing the consumer’s needs based on lifestyle, family structure and relevant medical history;
- comparing and ranking a range of covers from our participating funds based on those needs;
- providing a recommendation - a shortlist that meet those needs; and
- making it easy to purchase the right cover and assisting with the paper work.
By better understanding and matching their health cover needs with appropriate cover, consumers have the potential to save money. This can be achieved through choosing a similar policy with a lower premium and by adjusting excess levels or restricting services that may not be required.
We are an Australian company, which has been operating for eight years and, importantly for consumers, we are not owned or controlled by any fund. iSelect’s participating health insurance funds represent approximately 4 million privately insured Australians.