Private health cover premiums have risen more than three times the inflation rate this year, according to a news.com.au article from September 2016. As a result, the proportion of Australians registered for private health cover has fallen for the first time in 15 years. Fewer people covered for treatment in the private system means more likelihood of the public system being even more stressed.
As people turn away from private health cover, there's a higher chance they will face public waiting lists and quality of life issues by not having treatment as early as possible. If one of your employees falls ill and can't access appropriate care because they aren't covered in the private system and have to wait for space in the public system, their work may be impacted. That means your overall business productivity could drop as well. Corporate health cover becomes a necessity in this instance.
"We know with the [27 per cent health insurance tax] rebate now means-tested and indexed to CPI, we will hit an 'affordability cliff' in six years' time, with one-fifth of consumers significantly downgrading or dropping hospital cover," commented research firm IPSOS.
In order to maintain the health of your employees, even in the face of them dropping private health cover, they need to be supported by their employers.
What are the benefits of corporate health insurance?
Aside from helping to keep employees healthy with the benefits in a corporate health plan, employee satisfaction will rise when they realise they are covered in areas that they aren't by their own insurance. Your employees will be able to save money on private health cover because their corporate plan is all-encompassing (depending on the plan you choose).
They may not have to pay the Medicare levy surcharge, or go through any waiting periods either. These are all savings for employees, which translates into satisfaction with their employer, which then results in employee retention.
You'll experience improved workplace productivity and enjoyment, according to Comcare. The top talent in your industry won't think twice about working for you because of the range of benefits. Your own business will improve because you'll have the best employees and they'll be happy and healthy, thanks to the depth of your corporate health plan.
With rising private health cover premiums, this vision is a possibility. People are being forced to drop their own cover because they can't afford it, and employers can step in with a corporate health plan. For help choosing the most appropriate one for your business, have a free consultation with a HICA representative today.