Health insurer Australian Unity considers the Private Health Insurance Legislation Amendment (Base Premium) Bill 2013 is fundamentally flawed in the following areas:
Its application is confusing for consumers, who will struggle to compare products, and is costly for insurers, the result of which is likely to be higher premiums.
It will see consumers lose choice in the health insurance market place as insurers are forced to drop product benefits and compete solely on price. This will put further strain on the public health system.
Some of the detail of the changes, in particular around the application of the Weighted Average Ratio to new products, will only be finalised after the legislation becomes law, adding great uncertainty into the costs of the legislative changes.
Click here to read the Submission to Senate Community Affairs Committee - Inquiry into the Private Health Insurance Legislation Amendment (Base Premium) Bill 2013 in full.