Topic
On 1 April 2021, the Australian Minister for Health stated that the Government’s private health insurance reforms have resulted in the lowest annual average premium change for consumers since 2001 – 2.74%. See here (or a, below) for more details.
Specifically, we draw your attention to the Government’s 2019 reform to improve access to medical services for young people by allowing private insurers to offer discounts. See here (or b, below) for details. These discounts are in addition to the Lifetime Health Cover provisions which penalise those who take out private health insurance after the age of 30.
In your essay;
- Describe the policy change in the context of the Australian private health insurance market.
- Assess the government’s claim that the young adult discounts have led to a 20-year low increase in premiums.
- Examine the impact you think the reforms will have in the market for private health insurance.
A useful source of data that shows private health insurance coverage for various age groups may help you examine the government’s claim can be found here (or c, below).
- https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/lowest-private-health-insurance-premium-change-in-two-decades#:~:text=Australian%20Government%20reforms%20mean%20private,flexibility%20in%20their%20health%20care.&text=On%20average%2C%20from%201%20April,pay%20%242.44%20more%20a%20week
- https://www.health.gov.au/health-topics/private-health-insurance/private-health-insurance-reforms?utm_source=health.gov.au&utm_medium=callout-auto-custom&utm_campaign=digital_transformation
- https://www.apra.gov.au/private-health-insurance-annual-coverage-survey
What we are looking for:
- Describe the policy change including the potential rationale for the reform in the context of Australia’s Private health Insurance arrangements
- Analyse the potential impact of the reforms on young people, other insured people and uninsured people
- Examine (with data) the government’s claim that the young people’s discounts have led to low premium price rises.
- Based on your analysis, what do you think the impact of the reform has had.