- Coronavirus FAQ's
- How we're supporting you during coronavirus
- health.com.au with Kieser
- The value of private health insurance in a pandemic
- Adding or removing people from your account
- Authorising another person on your cover
- Cover review
- How do I check my limits?
- Pre-existing conditions
- Suspending your cover
- Updating your details
- What am I covered for?
- Waiting periods explained
- Private health insurance reforms
- Gap in cover
- Emergency Department Fees
- Going to Hospital
- Hospital Added Costs
- Insulin Pumps
- IVF & assisted reproductive services
- LHC exemptions
- Public vs. Private
- Restrictions & Exclusions
- Understanding out of pockets
- What is an excess?
- What is LHC?
- What is the MBS?
- Where does Medicare fit in?
- Transcranial Magnetic Stimulation (TMS) Pilot
- Annual premium review
- Can I lock in my premium?
- I can’t use my cover like I used to...
- What if my cover is currently suspended?
- Where do my premiums go?
- Why does my premium change every year?
- Why does my premium change, if I rarely make claims?
- Why is my price change different to the national average percentage?
- 3 ways to save money on your health insurance.
Why does my premium change, if I rarely make claims?
Australia’s private health insurance is based on a community rating system. This means that all customers pay the same premium for the same policy, so that insurers can’t discriminate against them based on health status or claims history. This keeps health insurance fair and accessible for all Australians.
For example life, auto or home insurances are risk-rated. This means the premium is calculated on the risk associated with a person claiming against their policy. This then allows insurers to refuse a person cover, increase their premiums or lower their benefits if a claim is made.
This is quite different from a community-rated system, where everyone has the right to purchase private health insurance. Health funds cannot refuse to provide you with the coverage you want based on personal circumstances, such as your health or how often you claim. You have the right to renew your policy and the cost of your premium will not increase based on these personal circumstances.