The headline rate announced today by Heath Minister Greg Hunt, which excludes the youth discount, is 4.19%
The average CUA Health premium change for 2019 is the fund’s second lowest average premium increase in almost 20 years, sitting just behind the 2018 increase, which averaged 3.29% and coincided with a new 4% health insurance discount for eligible members with both banking and health insurance with CUA.
“CUA Health is placing a strong focus on delivering good value to our members through a suite of simple products, competitive pricing and effortless member experiences,” CUA Health CEO Steve Chugg said.
“This is why CUA Health is returning more value to members through investing in additional health and wellbeing initiatives and new products available for purchase in the new year, giving our members more choice, depending on their budget and the level of cover appropriate to their individual circumstances.
“We are also continuing to offer the 4% CUA health insurance discount for those members who use CUA for both their banking and health insurance. More than $2 million worth of discounts have already been returned to members via this initiative with more than half of our CUA Health policy-holders currently enjoying the benefits of the discount.”
CUA Health’s commitment to delivering value and a good member experience through excellent service saw the fund pay out over $120 million in benefits for members last year. CUA Health was also recently awarded the 2019 Product Review award for best Health Insurer with a 4.5 star rating on the website, earned through independent consumer reviews.
Mr Chugg said the premium increase is necessary to ensure the continued sustainability of CUA Health and to meet projected future claims by policy-holders.
“We are facing higher benefit payouts as a result of continued increases in the cost of hospital admissions and other medical treatments or extras, and due to the ageing of the population,” he said.
“We believe this increase balances our aim to return value to members, while ensuring the long-term viability of CUA Health. By growing CUA sustainably, we can service even more Australians and provide a genuine, member first alternative to the bigger funds.”
Members are encouraged to phone CUA Health on 1300 499 260 to discuss the cover appropriate to their individual or family’s needs, rather than comparing the average increases across funds. Individual premiums will vary depending on the type of cover and the state in which the member lives.
CUA Health members will begin receiving letters from February, advising them of the specific changes that apply for their policy. Members can also avoid incurring premium increases for 2019 by opting to pre-pay their annual CUA Health policy before 1 April 2019.