Health Minister Greg Hunt approved an average premium increase of 3.99 per cent for CUA Health, applicable from 1 April 2020. The increase is lower than the average premium change in 2019 of 4.19 per cent.
“CUA Health’s commitment to simple products, competitive pricing and effortless member experiences is again reflected in our 2020 premiums, as we continue to identify ways to deliver value for our members,” CUA’s Head of Subsidiaries Josh Edwards said.
“We were one of the first health insurers to implement the Federal Government’s reforms earlier this year, giving our members a clear and diverse choice, depending on their budget and the level of cover appropriate to their individual circumstances.”
“As part of our 2020 changes, we are expanding benefits for more than 100 items across dental, physiotherapy and chiropractic treatment on our youth focused extras and packaged products.
“We are also continuing to offer the 4 per cent CUA Health insurance discount for those members who use CUA for both their banking and health insurance. This initiative has returned more than $5.2 million in savings back to members since its inception in 2018.”
CUA Health’s commitment to delivering value and a good member experience through excellent service saw the fund pay out over $123 million in benefits for members last year. CUA Health was also recently awarded the 2020 Product Review award for best Health Insurer with a 4.5 star rating on the website, earned through independent consumer reviews.
Mr Edwards said the premium increase is necessary to ensure the continued sustainability of CUA Health in an environment where there are increasing claims by policy holders.
“With the ageing population and the continued increases in the cost of hospital admissions and other medical treatments or extras, CUA Health is facing the same challenge of many other funds with higher benefit payouts,” he said.
“As a subsidiary of a member owned organisation though, CUA Health is determined to provide a genuine alternative to the bigger funds. We believe a premium increase that is lower than the forecast claims inflation we are facing, strikes an equitable balance between our members’ best interests and ensuring the long-term viability of our fund.”
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 2020 by opting to pre-pay their annual CUA Health policy before 1 April 2020.