Cheap but good Health Insurance

Although this is the smallest increase in Australian policy for nearly two decennia (yes, really), it will add an additional $73 per year and $143 per year for Australian households. With an increase in salary increases and rate of Inflation of around 2 per Cent last year, premium increases of almost 4 per Cent are high.

When German Health Secretary Greg Hunt approved the increase early this year, the delivery of the smallest rate increase in 17 years was evidence that the Turnbull administration is taking the heat off consumer health insurance. However, the secretary admitted that much more needed to be done to make sure that personal health insurance was cheap and payable.

Australia's consumer is becoming more aware of the cost of health insurance and many policyholders are reducing their insurance premiums. Speaking about "extras" reporting, the chairman of the ADA, Dr Hugo Sachs, says that the consumer is rightly skeptical about the value because they are often disappointed.

Prudential Regulation Authority Australian numbers show that in 2017 health insurance companies collected $6.47 billion in general health insurance premium for "extras" and disbursed only $4.87 billion, resulting in a surplus of $1.6 billion. Dr Sachs says this shortfall is evidence that the current financing schemes for dentistry and related healthcare do not meet the needs of many Australians.

"If you look at the median discount on the dentist funds, it's about $66 and the median yearly spending is between $270 and $280, but the best value insurance you can buy (with cover for dentistry) is $500," says Dr. Sachs. Of the nearly $10 billion dollars that have been invested in oral care, 58 percent came from the consumer and only 18 percent from personal health insurance companies.

It' a miracle the Australians question the value of this insurance? Another big issue Dr. Sachs sees is that the answer in this case - that of the insurance company - does not sufficiently resolve the issue - to make healthcare payable. The high cost of the bags causes humans to postpone or even prevent dentistry, which in the long run is more expensive.

"Preserving the health of the mouth is cheaper than the treatment of diseases," says Dr Sachs. A resulting review was published in March this year and identifies a health saving plan as a possible workaround. A HSA is similar to any other face-to-face saving plan, but the only end of the saving is to meet your health care costs and is backed by the federal Government in terms of fiscal offsets.

The model, which spends $186 per capita, indicates that the federal administration could make it possible to make $125 per capita per year in saving money. That means that the mean amount that individual persons save for dentistry and related health care is almost seven fold the amount of the grant costs provided to promote these economies. ADA calls on consumer and policy makers to reconsider the need for "extras" coverage and to consider the introduction of the HSA as a feasible one.

Sachs acknowledges that this is a big request and agrees that it is not a matter of urgency at the moment, but he is confident that the present dissatisfaction of customers could make a difference. When you are a user who is dissatisfied with your health insurance, it might be a good idea to make some noises.