Australia's two largest hospital operators want to remove the private health insurance sector, and allow consumers to establish medical savings accounts, according to an Australian Financial Review article from October 2016. The medical savings accounts would empower people to deal directly with private hospitals, and Ramsay Health Care and Healthscope are leading the charge for the initiative.
The advantages of having private health cover include not having to deal directly with hospitals to come up with solutions to problems – the insurer will communicate on your behalf. However, if private health cover is thrown out to be replaced by a medical savings plans, many people might struggle to arrange suitable care for themselves. Employers could step in by establishing corporate health insurance, though.
How will corporate health cover impact employee retention?
If employees aren't able to get appropriate treatment at a private hospital because of their inability to effectively communicate what they need, or they simply do not have enough money in their medical savings account, the public system will be overrun. However, employers could have an opportunity to step in and make it easier for their employees to get treatment.
Particularly for chronic disease management, Broader Health Cover was introduced in 2007 as a way to find the most appropriate treatment for each person without having to be admitted to hospital. Without that plan, these patients would be left to fend for themselves, because there would be no private insurance under Ramsay Health Care and Healthscope's initiative.
Why is corporate health cover an advantage for employees and employers?
Under a corporate plan, employees would be covered for many treatments and chronic diseases, as well as various extra benefits, depending on the insurer. Employees see this is as advantageous, because they would not have to deal directly with the private hospitals.
What's more, the private health sector is becoming more and more expensive. Private health patients pay an average of 48 per cent more than their public counterparts, according to Canstar. As it becomes more expensive to get the required level of cover, these patients will look favourably upon businesses that offer cover as an employee benefit. Your business can hire the best people in your field if you offer suitable corporate health benefits as part of a comprehensive benefits package.
The health insurance sector comprises 34 different businesses, according to IBISWorld. Making sure your business has the most appropriate cover in place for employees, both current and future, can be difficult by yourself. Talk to HICA today for a free consultation and to find which insurer would be the most suitable for your needs.