Have you recently looked at your private health plan and been disappointed? More than 5 million people reviewed their private health cover in the last 12 months, as stated in a Guardian Australia article from November 2016. As premiums rise but cover remains the same, people become less satisfied that they're getting what they're paying for. The next time your employees review their private health cover, a corporate health insurance could prove very useful.
The implications of rising private health insurance premiums include more people dropping cover, or opting for the bare minimum in order to avoid paying government penalties or the Medicare levy surcharge. With research firm Galaxy finding that 45 per cent of people in a survey thought their private cover was "very expensive", as stated in the Guardian article, businesses can ease some of the burden on their employees.
How does a corporate health plan ease the burden on employees?
Currently, private health insurance premiums are rising, and they're reaching the point where they are becoming unaffordable to many people anyway. If people decide to drop their cover altogether, they will be left to deal with the private hospitals by themselves, which could turn into a very expensive exercise. If they keep their private cover, they might not see the benefits over the course of their lives, and this too will be expensive.
The Lifetime Health Cover penalty doesn't make it any more affordable, either. After you turn 31, if you purchase private hospital cover, you will pay a loading on top of your premiums. For each year after, the loading increases by 2 per cent. Private health cover doesn't necessarily become more affordable as you get older, and people drop it to maintain a balanced budget.
A corporate health plan will take away the necessity for an employee to have an all-encompassing private health plan, because they'll be covered under their work scheme. This means they can drop parts of their current cover, or replace it, and save money, while still being insured for anything that goes wrong.
Should your Australian business have a corporate health plan?
In order to keep your employees satisfied with their corporate benefits, choose the most appropriate corporate health plan for their needs by chatting with a HICA representative. That way, the next time they go to review their private policy and find that it's "very expensive", they can rest assured knowing they have the option of participating in their employer's corporate health plan.
Make sure your employees are happy and that they don't have to pay for unnecessary or unaffordable health cover. Get in touch with HICA today to sort out a suitable option for your business.