CUA Health 2018 Premium Increase FAQ
Did you know CUA Health pays out more for our members? Show content
- CUA Health paid out $122.5 million in benefits for our members last year. This is almost double from 5 years ago.
- CUA Health is great value, we paid out 85.2c of every $1 in benefits for our members (Our PHI industry average is 85.0c).
- We are investing in our products. To ensure our products continue to provide great value health insurance, we are making a number of benefit improvements designed to support our members’ health and wellbeing.
Why does my premium increase every year? Show content
The average age of the Australian population continues to increase, meaning the demand for health services is on the rise.
Australians, young and old, are using more healthcare and the advances in technology mean we have access to ever-evolving health treatments and services, which has increased the cost of healthcare.
While this is great news that we are all living longer, it does mean an increase in health claims.
Some examples of the recent claims that CUA Health has paid out for our members:
- $270,238 - Cardiac surgery and Organ failure
- $205,700 - Neo Natal Care for premature baby born at 26 weeks.
- $203,297 - General surgery requiring ongoing infection management
- $185,865 - Care in special care nursery after premature birth
- $144,161 - Gastric related procedure and renal failure
- $141,084 - Infection treatment post-surgery
- $137,037 - Cancer treatment and infections post-surgery
- $134,848 - Infection treatment post-surgery
- $127,042 - Influenza and kidney failure
- $125,878 - Pneumonia
- $125,370 - Ulcers in Intestine
Why has my government rebate reduced? Show content
Unfortunately this is something that is decided by the federal government and Health Insurers have no control over. You would need to contact your local Member of Parliament with concerns or queries about this.
How much is CUA Health increasing by as an average? Show content
CUA Health’s products are increasing by an average of 3.29%. However, this is an average and individual members’ premiums will be either higher or lower than this average. Please note that this also includes a 4% member discount that will be available for all CUA members who pay their health insurance premiums from a CUA bank account from 4 April 2018.
What is the industry standard increasing by as an average? Show content
The industry weighted average is 3.95% across all funds.
I don’t make any claims, so why does my premium keep increasing? Show content
Unlike property or car insurance, health insurance isn’t based on your individual risk or likelihood to claim. People’s healthcare runs at an extremely high cost, and health is much more expensive to fix.
Private health insurers must ensure health insurance is available to everyone without discrimination. This means that we base the cost of premiums on all types of cover and the overall cost of claims made.
In the last financial year CUA Health paid out 85.2c of every $1 in benefits for our members.
Remember that CUA Health insurance is a product that provides peace of mind. CUA Health insurance is there for unexpected events, and allows more choice in a potentially highly stressful life event. This is what your premiums provide for you and all members who choose to have CUA Health insurance.
There has been a lot of media coverage on the cost of Health Insurance going up higher than the CPI (Consumer Price Index). Why is it increasing so much? Show content
The CPI looks at the average cost of a wide range of goods and services. Health Insurance is impacted specifically by the cost of health care, the ageing population and improvements in technology. In 2015-2016 health funds paid $19 billion in benefits and increased to $19.8 billion in 2016-2017, an increase of 4.2%. These costs are increasing at a greater rate than the CPI.
Is there a way to avoid paying the premium increase? Show content
Yes, one option is to pay a full year’s premium in advance by the 3rd of April 2018. Join today and prepay up to 12 months in advance at pre-April 4th rates.
What is happening with Government reform? Show content
In October 2017, the Federal Government announced a range of reforms to assist with keeping health insurance premiums affordable. CUA Health has fully reflected the expected savings of these changes into our premiums and will continue to work with the government to ensure health insurance remains affordable for all Australians.