Health insurance premiums are set to rise in 2014, and a sluggish response from the health fund rebate will leave Australian families out of pocket, according to a November 25 article from the News Limited Network.
The 30 per cent health fund rebate is scheduled to rise in line with inflation rather than the amount by which private health insurance providers are planning to raise their premiums.
This is troubling as reports suggest the cost of health cover will increase by two or three times the rate of general inflation.
Inflation is expected to increase by just 2.2 per cent, while industry professionals expect premium growth will fall anywhere between 5.5 and 7 per cent.
This decision will see Australian families having to pay up to $300 more for health insurance upfront, which will result in an cost increase of between $47 to $68 each year.
Health fund providers have requested the premium rise after almost one million Australians made the decision to downgrade their private health cover over the past year.
With premiums expected to rise, consumers are encouraged to look around and do some research to find the best policy for their needs and budget.
If you are unsure about how these premium rises will affect the cost of your health insurance, or need help comparing health insurance policies, contact HICA today.