What could the election results mean for your insurance?
The Federal Budget for 2016/2017 has been wrapped up already, but the forthcoming federal election promises to put a stone in the shoe of those who think more changes aren't coming. Elections are full of different promises and policies, and if you are concerned for the future costs and efficiency of your health insurance, it's worth while to take a look at what the result could mean for your finances and health.
Coalition
It is understandable then why the party has put such a focus on improving value for money.
According to a survey from the Coalition, more than two-thirds of the 40,000 Australians who responded to the survey believed they were not getting enough bang for their buck when it came to their health insurance. With such significant support from their voter base, it is understandable why the party has put such a focus on improving value for money as well as accessibility in private insurance.
To that end, the Liberal Party intends to create a mandated level of cover to eliminate junk policies, ensure that providers use plain English in their documentation, and perhaps most significantly of all, implement a gold, silver and bronze standard for health cover to improve understanding of exactly what you are paying for.
Other changes also include the reformation of the Prostheses Listing Advisory Committee, which has been welcomed wholeheartedly by Private Healthcare Australia, as has the new direction toward accessibility, affordability and transparency. A total of $21 million has also been committed to a new Health Care Homes trial, intended to create more flexible payment structures for practitioners, with the ultimate aim of keeping the chronically ill out of hospital on a more frequent basis.
Overall, in comparison to Labor, the Coalition seems to be focusing on using current resources and schemes more efficiently, rather than developing a slew of new ones or making any large revolutions. Limited direct investment from this party, though the unfreezing of the rebate will be a welcome relief to those with private health insurance.
Labor
One of the few health-related cuts that Labor has announced is that of the continuation of the private health insurance rebate freeze for another five years, expecting a reported $3 billion in savings as a result. On a similar note, Labor will remove the availability of natural treatments under the rebate, making certain processes more expensive for those who choose to use them.
On the spending side, Labor is intending to reverse the Coalition's cuts to bulk billing incentives for some medical scans, such as pathology and diagnostic imaging. Arguing that removing the incentives would make these common procedures more expensive and put people off from getting necessary scans, Labor has put this at the forefront of its health policies.
Along with this re-funding, an emphasis has also been placed on more holistic and community-based health interventions, particularly around chronic illnesses. Labor's five point plan in this regard includes the establishment of a National Physical Activity Strategy and National Nutrition Network, direct investment in communities most at risk of poor health, and expanding the current Better Health Channel.
The rebate freeze could very well do some damage to the affordability of healthcare and private health insurance in general in Australia, though the continued support for common scans and health processes could do something to offset this. Meanwhile, community-based health could be seen as a step in the right direction - healthcare extends beyonds the confines of yourself and your family, after all.
Greens
"Any measure that places more people on our public hospital waiting lists is bad health policy."
The Greens, on the other hand, are taking a more extreme position. Rather than removing the availability of rebates from certain treatments, the Greens have instead announced their intention to remove the rebates entirely.
Citing the rising costs of private health insurance and the subsequent increased rebate values, the Greens advocate instead for pouring the capital that would have gone to rebates into the public system instead - a $6 billion booster shot.
However, those in the industry have taken issue with this stance, particularly Private Healthcare Australia. Rather than having the intended effect of improving the public system, Chief Executive Dr Rachel David argues that the increased volume of patients in public hospitals would more than offset the increased investment capital.
"Any measure that places more people on our public hospital waiting lists is bad health policy," Dr David puts succinctly.
"If the Greens have any influence on healthcare policy, many Australians will be forced to drop or downgrade their health cover. Every Australian who pulls out of private health insurance will have to rely on the public hospital system and those who remain will have to pay higher premiums."
Considering Australian Taxation Office data reveals that almost half of all Australians with private health insurance earn less than $50,000 a year, the elimination of rebates could do some serious damage to affordability for the average consumer.
Lots of different promises, ideas and policies from every party. The Liberals are working with what they've got, Labor are intending to bring out new schemes and services, while the Green seem to be focusing on the public system rather than the private. In any case, big changes are coming for your private health insurance, so it's time to make sure you are on top of your current one. To find out more about your options in health insurance, make sure you get in touch with HICA on 1300 44 22 01.
