Rate Rise 2024 Frequently Asked Questions
The Minister for Health and Aged Care, the Hon. Mark Butler MP, recently announced his approval of the annual premium increases for all Australian private health insurers. Below you’ll find answers to commonly asked questions about Navy Health’s rate change.
Rate Rise 2024 Frequently Asked Questions
Rate Rise 2024 Frequently Asked Questions
The Minister for Health and Aged Care, the Hon. Mark Butler MP, recently announced his approval of the annual premium increases for all Australian private health insurers. Below you’ll find answers to commonly asked questions about Navy Health’s rate change.
Can I lock in my current premium rate before the increase?
Yes. You can choose to pay your premium (or a portion of it) in advance, and if you do so before 1st April 2024 your payment will be based on current premium rates. The maximum you can pay is up to 12 months in advance, from the date that you make the payment. You will only need to pay the difference between your current paid to date and the future date you wish to pay up to. The increase will then only apply from your new paid to date.
How do I pay my premium in advance?
If you would like to pay your premium (or a portion) for up to 12 months in advance, you can do so through the Navy Health App, by logging in to the Member Portal, or calling us on 1300 306 289 to make a payment over the phone. If you pay your premium in advance before 1 April 2024, your payment will be based on current premium rates.
Why is my increase different to the average?
This year’s 3.10% annual premium increase is an average across all policies, and so it may be different to the increase applied to your specific policy. Individual premium increases differ between policies based on items such as the type of cover and your State or Territory.
Each product is priced individually depending on the increasing health care costs associated with that product in each State or Territory. Many factors are considered, including the number of members on the products, the risk profile of the members within the products, and forecasted claiming patterns. Some products attract a higher price rise due to the number of claims and the amount of people holding that particular level of cover.
The price increase does not differ between individuals depending on your personal claiming habits. For example, all members in NSW holding the same level of cover will receive the same increase.
Should I review my level of cover?
We always recommend doing a regular cover review to ensure that you are on the best cover for your circumstances. Please don’t hesitate to call us on 1300 306 289 and we would be happy to assist with a review.
Why are premiums rising on 1 April?
Last year we delayed our premium increase for seven months, so we could return an additional $2.2 million of COVID-19 savings to our members. These COVID-19 savings were the result of the Government-imposed restrictions on health services from 2020 to 2022.
This year the Minister has directed all Australian private health insurers to apply their premium increases on 1st April 2024.
Why are premiums increasing?
There are a few reasons why premiums rise each year, including the growing number of people in need of hospital and health services, plus the increased costs associated with providing these services.
Each year we carefully review all levels of cover and consider many factors that affect the cost of claims, including:
– Increases in the cost, volume, and frequency of claims.
– The trending rise in chronic illnesses and obesity.
– Introduction of more complex and costly medical procedures.
– The need for innovative technologies and the increased cost of medical equipment.
– Australia’s growing ageing population, which needs more medical and surgical care.
– Increases in doctors and surgeons’ fees, as well as healthcare staff wages and salaries.
Navy Health prides itself on being one of the most competitively priced funds in the industry. By keeping this year’s average annual increase to just 3.10%, we’re aiming to reduce the overall change to your health insurance premium this year and keep it lower than Australia’s general inflation rate.
What if I’m experiencing financial hardship?
If you are experiencing financial hardship, we’re able to assist you. Please don’t hesitate to call us on 1300 306 289 and we would be happy to discuss assistance packages that could help. Depending on your circumstances, you may be able to apply for a suspension on your policy. To learn more, visit https://navyhealth.com.au/knowledge-base-articles/suspending-your-cover/.
