“What many older Australians are looking for is confidence that they will still be able to afford the healthcare they've planned and budgeted for over many, many years.” – Ron Jowett, Australian Unity Member
Key points
- Australian Unity is advocating for older Australians to maintain access to private health insurance and timely care.
- The proposed age-based rebate change has not been passed by Parliament, so current arrangements remain unchanged.
- Members can request a Right Cover Check to better understand whether their cover still suits their needs and budget.
For Ron, a long-term Australian Unity Member who has held private health insurance for more than 63 years, the experience reinforced the value of having greater choice and access to care when it matters.
“We value our private health insurance very much and we would never give it away,” Ron states. “Even though our budgets are stretched we believe it’s still very important to us and we will retain it.”
However, proposed changes to government rebates could result in health insurance becoming more expensive for some older Australians.
What the proposed change could mean
The Australian Government has proposed removing the higher age-based private health insurance rebate currently available to many Australians aged 65 and over. The rebate is a government contribution that reduces the amount eligible people pay towards their private health insurance premiums.If the proposal becomes law, rebate levels would be based on income only, rather than age and income. Some older Australians could then pay around 5 to 11 per cent more to maintain the same level of cover, depending on their circumstances.
“We’re hearing from older members who have planned carefully for retirement and maintained private health insurance for many years,” says Rebecca Harwood, CEO of Private Health Insurance at Australian Unity.
“Even a few hundred dollars can have a meaningful impact on household budgets, so it’s an understandable concern.”
If you’re an existing member it’s important to note that the proposed rebate changes have not been passed by Parliament. Australian Unity will contact members should the proposed changes pass and become law with further information and what it means for your cover.
To learn more about the potential effect of the proposed changes, Rebecca sat down with Ron to chat about what the reforms could mean for him and why he values his private health insurance.
Supporting access to private health insurance as Australians age
For many Australians, private health insurance becomes increasingly important as they age. Health needs can change and having suitable cover can provide greater choice about where and when treatment is received.
“As we age, healthcare needs often increase,” Rebecca says. “Private health insurance can provide greater choice around your doctor, specialist and hospital, helping people feel more informed and in control during what can be a stressful time.”
Australian Unity believes older Australians should continue to have meaningful access to private healthcare and the freedom to choose cover that supports their needs. That is why it has lodged a submission to the Senate opposing the proposed rebate change, with Rebecca also giving evidence before the Senate committee examining the proposal. Australian Unity is concerned the proposal could make it harder for some older Australians to maintain private cover and could place additional pressure on public hospitals, home care and aged care services.
For Rebecca, Ron and Australian Unity, the issue is also one of fairness. Many older Australians have maintained private health insurance for decades and planned for retirement based on the support available to them.
“Many older Australians have held health insurance for decades and have retired based on the affordability settings we have in place today,” Rebecca states. “So, for many of them they feel that the rules are shifting at a time when their healthcare needs are growing.”
Ron agrees. “These are very important issues to me personally and to lots of friends of mine.”
“What many older Australians are looking for is confidence that they will still be able to afford the healthcare they've planned and budgeted for over many, many years.”
Australian Unity is also looking at practical ways to support members as their needs change. This includes developing cover options for different life stages, such as Beyond50, a range of hospital, extras and combined covers designed for Australians in their 50s, 60s and beyond.
This advocacy and development of more relevant cover options reflect the same goal: supporting the health, independence and confidence of older Australians through health insurance policies tailored to their current stage in life.
Why timely care can support independence
Maintaining access to suitable cover can be particularly important when timely treatment supports mobility, independence and everyday life.
For Ron, this is key for the long-term health and wellbeing of his wife and himself.
“Timeliness is so important with your health,” Ron says. “Timely access is the key issue, because in the public system you don’t know what’s going to happen.”
Australian Unity is concerned that higher costs could lead some older Australians to reconsider their level of cover or delay treatment. As people age, they may be more likely to need services such as cataract surgery, joint replacement, cardiac care, cancer treatment and rehabilitation.
For Rebecca this is a primary concern, because, regardless of the level of cover people hold, their “healthcare needs don’t go away.”
“Health insurance enables people to remain independent, active in the community and more importantly healthy,” Rebecca adds.
“It’s important to get timely access to care, to remain active, engaged with life and independent. These have broader implications in terms of family and carers if you don’t get timely access to care.”
Timely treatment can have practical effects on daily life. It may help someone keep moving, driving, taking part in their community, or managing at home. When access is delayed, the consequences can extend beyond the treatment itself and affect family support, home care needs and independence.
For members reviewing their health insurance, the focus should be on finding cover that suits their needs and stage of life. Australian Unity’s team can help members understand their current cover and the options available.
Make sure your cover still suits you
Health needs and priorities can change over time, so it is worth regularly checking that your private health insurance still provides the right level of cover for your needs and budget. Understanding what you are covered for can give you greater confidence that your cover continues to support you now and in the years ahead.Rebecca says understanding your cover and checking that it still reflects your needs, circumstances and stage of life can help you make the most of your health insurance.
“My advice is to stop and take time to understand what the changes mean for you and then call your health fund,” she says.
“They can talk you through the options available to you and just make sure that you understand what it means to you before you make any decisions.”
Australian Unity Members can request a Right Cover Check to better understand their current benefits and whether their cover continues to reflect their health needs and budget.
Having cover that reflects your needs can support greater choice, access to care and confidence about the future.
