FAQs for Rate Review 2017

Why is CBHS increasing its premiums at all?

We have endeavoured to keep premiums as low as possible and have succeeded at delivering the lowest price rises across the industry.

However, there are unavoidable factors which impact the cost of private healthcare.

Our ageing population – Australia is no longer a ‘youthful’ country. Because a higher percentage of the country’s population is older, we have more members making claims and more people needing health care treatment.

Higher cost of treatment – Health costs are rising at a greater rate than CPI/inflation.

The combination of more people using increasingly expensive healthcare has led to the current rise in rates.


When will the rate rise take effect?

The rate rise will come into effect on 1 April 2017.


I pay annually - will I be affected by the rate rise?

This depends entirely on the date you pay.

If you pay before the increases are in place, you will pay the rate applicable at that time, and start paying the new rate next year.

If you pay after the increases are in place, you will pay at the new applicable rate.


How do you have such a low rate rise compared to other health funds?

This was a conscious effort on behalf of CBHS. Members expressed their concerns about health insurance affordability, so we’ve managed our costs responsibly, invested in our internal customer support services, and pushed for the following initiatives:

Hospital in the Home (HITH)

This program delivers professional care and help to your door, allowing our members to spend less or no time in the hospital with the same great level of care for a lower cost and as a result, generally have a faster recovery time. This initiative has been a very positive step for our members.

Chronic Disease Management Program (CDMP)

This program is designed to assist you with your health long term by providing health management, advice, goals and solutions. If we have healthier members, fewer people will need to make claims which will keep premiums lower for everyone.


Why is your rate higher than CPI?

This is a common cause of confusion – CPI refers to a broad, general calculation of purchases, from groceries to other household and general spending. Many macro-economic factors in Australia are currently causing very low rates of inflation.

However, if you look specifically at the rise of health costs, CBHS is slightly below that inflationary level.

Again, our ageing population and rising demand for health care are contributing to high inflation in the health industry.


Why has my premium gone up by more than the rate you have told me?

The major cause for this is the Government reducing the rebate.

Where your individual rates are concerned, these will be affected by the particular services and products covered by your insurance.


Why is there a different rate rise between CBHS Corporate Health and CBHS Health Fund?

CBHS Health Fund is a restricted not for profit fund exclusively for the current and former staff, contractors, and their families of the Commonwealth Bank Group. These members can obtain products and services that aren’t available for those covered by CBHS Corporate Health.

CBHS Corporate is a new initiative focused on providing health insurance products to a broader range of corporate partners and their staff while utilising the expansive knowledge and excellent Member Care services of CBHS Health Fund. 


Why do rates vary from state to state?

Hospital cover: Regulation of hospitals differs in each state of Australia, leading to different costs for services.

Extras cover: Charge and claiming patterns are different depending on which state you live in, and these differences are reflected in your contributions.


What is the Australian Government Rebate on Private Health Insurance?

The Government announced that from 1 April 2014 and on every April 1st thereafter, 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 download the Australian Government Rebate Form here.

 


The table below shows the new rebates.

Rebate Percentages (beginning 1 April 2017))

 

Status

Base tier

Tier 1

Tier 2

Tier 3

Income Test

Singles

$0 - $90,000

$90,001 - $105,000

$105,001 - $140,000

$140,001+

Families

$0 - $180,000

$180,001 - $210,000

$210,001 - $280,000

$280,001+

Oldest Person on Policy

Under 65 years

25.934%

17.289%

8.644%

0%

65 - 69 years

30.256%

21.612%

12.966%

0%

70+ years

34.579%

25.934%

17.289%

0%