Thursday 25 January 2018: CBHS Group, comprising CBHS Health Fund and CBHS Corporate Health, recorded two of the lowest average premium increases across the private health insurance industry in the 2018 annual rate review, for the second year in a row.
The Minister for Health, the Hon. Greg Hunt MP, today formally announced private health insurance costs will increase by 3.95% on average for all private health insurers, the lowest growth for seventeen years.
CBHS Corporate Health and CBHS Health Fund recorded average premium increases of 2.38% and 2.73% respectively, both of which are well below the industry average.
CBHS Health Fund is a not-for-profit private health insurer whose eligibility is restricted to current and past employees of the Commonwealth Bank Group and their families. With more than 220,000 lives insured, it is the 10th largest private health insurer in Australia and achieved the lowest rate increase of the top 10 funds. CBHS Corporate Health, the sister fund of CBHS Health, is focused on providing health insurance products to a broader range of people, including those that aren’t eligible for CBHS Health, as well as corporate partners and their staff. CBHS Corporate Health achieved the lowest increase across all open (non-restricted) funds.
CBHS Group CEO Andrew Smith said both funds remain committed to minimising the cost of healthcare and premiums for members.
“Our latest average premium increases are some of the lowest in the industry again and signal our commitment to protect the continued affordability of cover for members,” he said.
“The ageing population is driving significant growth in claims, the impact of which is compounded by the rising cost of healthcare. As a responsible fund CBHS must take steps to ensure operations are sustainable over the long term. Part of that process is reviewing premiums so that we can meet claims in future years.”
“While some level of increase in premium is beyond our control, we need to ensure this is kept to a minimum. Our absolute priority is providing affordable private health insurance to our members, and we continue to work with the Government and Industry to keep costs as low as possible.”
“We’ve also delivered on our commitment to pass on all cost savings from the Government’s Private Health Insurance Reform Package direct to members in the form of lower premium increases.”
Dario Molina, CBHS Corporate CEO added, “Our focus is on delivering operating efficiencies, cost savings and value to our members, which is why we’ve been able to keep our premiums lower.”
“We’re highly competitive when it comes to price and benefits. Feedback from members highlights our great value products and the peace-of-mind that comes from our award-winning service.”
The premium increases will take effect from 1 April, 2018 and CBHS will contact members directly to explain how individual cover is affected.