Why is CBHS increasing its premiums?
Like all health funds, CBHS is required to review premiums each year to ensure they continue to reflect the cost of providing quality cover. Following our most recent review, there will be an increase in premium on your health cover, this increase has been approved by the Australian Government as being appropriate, taking into account many factors including rising health costs.
CBHS seeks to limit the impact of these cost pressures by continually looking for ways to operate efficiently so that we can return high levels of benefits to our members.
Why have my premiums increased more than inflation?
Australia’s health industry is experiencing growth in claims costs and CBHS is no exception; particularly in relation to hospital and medical services.
Some factors leading to this rate increase include:
- The increase of medical practitioner rates.
- The cost of new medical equipment and technology (including the increasing number of new effective but expensive procedures and medical appliances) available through private hospitals.
- The increase in cost for orthopaedic, cardiac, respiratory and obesity related services.
As we live longer and more procedures become progressively available, trends like this are usually expected.
Why are my premiums increasing but my benefits aren’t?
At CBHS we pride ourselves on actively listening to our members and the feedback has increasingly focused on the affordability of private health insurance, with members seeking a better balance between benefits provided and the cost of their insurance. The decision to maintain benefits on most CBHS policies reflects that feedback and will assist to keep the 2018 increase in contribution rates as low as possible for all members.
Some members may have received changes to their benefits this year and we continually strive to ensure that we give back to our Members at every possible opportunity. The Benefit Review is focused on ensuring that our benefits and products remain sustainable and competitive in the interest of our Members.
Why should I continue with CBHS?
As a not for profit fund, CBHS’ premiums are generally already below those of our major competitors, yet we provide outstanding returns and high per service benefits. CBHS is also committed to providing great customer service.
How does CBHS compare to other funds in terms of premium increases?
We listen to our members and hear that affordability is a priority, so we’ve worked hard to again deliver the lowest possible rate rise in 2018.
This year our average premium increase was 2.73%, which is well below the national average premium increase of 3.95%.
When was the last rate rise?
The last rate rise occurred on the 1 April 2017.
Why is health insurance important?
We strongly believe that the health of every Australian should be a priority no matter how old you are or what your current life stage is, whether it be single, married, starting a family or retired. You never know when you or a loved one may need health related services, CBHS is here to assist you as much as possible.
As a member of CBHS, you belong to an exclusive health fund that is run solely for the benefit of its members.
When will the rate rise come into effect?
The rate rise will come into effect on 1 April 2018.
I pay annually; will I be affected by the rate rise?
Yes, when your paid-to date expires, the new rates will apply.
I pay in advance, what happens to my membership?
For all members who have paid in advance, your current paid-to-date will remain unchanged. Your rate is protected for the period that your membership is currently paid to.
I can’t afford this contribution, what can I do?
There are several options you can consider:
- Claim the Australian Government Rebate on Private Health Insurance: If you are not claiming it already, you can reduce your regular contribution by claiming the Rebate as a reduced premium. (Note: to find out the level of rebate you may be entitled to visit privatehealth.gov.au).
- Select a Hospital product with a Co-payment: You can consider taking on a co-payment if you don’t have one. In the event that you may need to go to Hospital you’ll pay a daily cost up to a maximum of 6 days per adult on the membership, with a cap of 12 per year per family depending on your cover.
- Change your level of cover: You can consider decreasing your level of cover with CBHS. Contact our friendly team on 1300 654 123 (Monday to Friday 7am – 7pm AEDT) to discuss your options.
Why is my rate less / more than rates in other States / Territories?
- Hospital cover: Hospital systems are regulated differently in each State and have different costs. The contribution rate you pay reflects these differences.
- Extras cover: Charging and claiming patterns differ between States. In NSW, the higher contribution rate reflects these differences.
Can you tell me more about the Australian Government Rebate on Private Health Insurance?
In addition to the base premium increase, the Government announced in 2014 that it would decrease, annually, the percentage of the Australian Government Rebate on Private Health Insurance (Rebate). This results in an increase to the amount of your contribution each year.
When the Government made this change, it meant that its contribution to an individual's private health insurance rebate would be indexed annually by the lesser of the Consumer Price Index (CPI) or the actual average increase in the premium charged by insurers.
The Australian Government Rebate on Private Health Insurance is income tested which simply means that a person’s eligibility for this rebate is determined by their level of assessable income for Medicare Levy Surcharge tax purposes. If your adjusted taxable income is over the defined tiers then the amount of rebate you receive may be reduced (or removed completely). If you haven’t nominated your tier, we encourage you to do so as soon as possible. You can nominate a rebate tier by logging in to the CBHS Member Centre and selecting Manage My Rebate under the My Account menu.