A major change in private health insurance policies that could save some families thousands of dollars in premiums has been introduced.
The age limit for dependent children has been raised from 25 to 31 for a handful of Australian health insurers, allowing them to stay on family insurance for longer.
Health insurers raising the dependent age limit include Medibank, AHM, BUPA, and HCF.
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The changes mean families could potentially save thousands.
Those with one child in their late 20s with low hospital and extra insurance coverage could save up to $1,010 a year, while those with two or more children in their 20s could save more than $3,000, compare club experts estimate.
However, a one-time top-up fee of 25 percent is charged for the first adult child who is included in family health insurance.
For Bupa customers, dependents can keep their family policy until their 32nd birthday, a change that went into effect on September 1st.
Chris Carroll, chief executive of Bupa Health Insurance, said the change would help more young Australians have better access to private health insurance while remaining affordable. “The pandemic has prompted many young people to reassess what’s important to them, and their health and well-being have emerged as clear priorities,” Carroll said.
“Not only will this policy change have financial benefits for young Aussies, who are facing increasing pressures on the cost of living, but it will also help to support continued participation in private health care – a key factor in making it affordable and affordable for the rest of the community to keep accessible. while relieving our public system, which remains under stress.”
Meanwhile, on September 1, the Health Fund HCF raised the age of adult dependents from 25 to 31.
HCF CEO Sheena Jack said it is important that health care remains affordable for families.
“We know there is increasing pressure on the cost of living for all Australian families and that means the typical household dynamics are changing,” Jack said.
“Especially in the capitals, more and more young adults are staying at home with their parents to reduce the cost pressure when studying or starting a career. This age increase is one way we can help make healthcare more affordable for these younger members.”
Medibank and AHM
Medibank and AHM also introduced the changes, which went into effect on August 18.
Milosh Milisavljevic, chief executive of Medibank Group, said the change will ensure more younger people stay in private health insurance and ease pressure on the cost of living.
“We want younger customers to stay on private health insurance to ensure they’re covered for the unexpected, while also taking some pressure off the public health system,” Milisavljevic said.
The latest census data shows that 456,543 people between the ages of 25 and 34 live with their parents – a 17 percent increase since the last census (2016).
NIB, Australian Unity, GMHBA and Frank Health Insurance have yet to enact changes to the age limit for dependent children.
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