Each year on April 1st, health insurers adjust their premiums to account for increases in utilisation and treatment costs. The Department of Health approves these average increases per fund as well as adjusts the rebate tier rates effective April 1 annually based on the Rebate Adjustment Factor. Once this information is shared with health funds, we are able to communicate to our Members what the policy specific health insurance premium will be after the changes take effect.

Queensland Country Health Fund is pleased to announce that the 3.95% premium increase for 1 April 2019 is our lowest premium increase in 10 years.

Below we have addressed some frequently asked questions:

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Why do funds report an average increase percentage?

While the approved premium increase rate shared publically represents the average premium increase per fund, this is not indicative of what every consumer may experience. Some products may offer either a lower or a higher increase.  We inform Members in writing of the exact premium increase for their particular policy directly and take into account the policy specific premium and rebate to provide this exact amount.

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Why do health funds increase their premiums?

Premium increases occur as a direct result of increases to the cost of hospital charges, treatment fees and utilisation of the services. During the 2017/18 financial year, our benefits paid increased by 12% or $11.1 million.

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If another funds average increase is lower, will their product price point be lower too?

Even though our increase may be slightly above some funds, it’s important to note that if our base premium (without Australian Government Rebate or Lifetime Health Cover Loading if applicable) is lower, the overall dollar increase for our product may still be lower despite a slightly higher increase. Below is a link to see what the average premium increases have been over time to get a snapshot of how premium increases have fluctuated over the last few years.

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Why does the rebate reduce yearly at the same time premiums increase?

In 2012 a decision was made by the Government to reduce the rebate percentage and this has been declining steadily since. Below is a link to some frequently asked questions of the Department of Health with regards to this.

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How does Queensland Country Health Fund address affordability issues and increased costs of health care?

We work closely with the Government and our peak industry body Members Health to reduce costs and provide greater benefits for the policyholders of 25 health funds like our own who are ‘putting Members’ health before profit’.