What's on the roadmap for PHI in 2021?
Some new measures for Private Health Insurance were announced in October for the 2020-21 Federal Budget, with $19.5 million committed over four years to fund a range of initiatives to improve the accessibility and affordability for Australian consumers.
The Budget is framed as delivering a second wave of reform that builds on the Minister’s previous Private Health Insurance reform package. It is part of an iterative reform process and we can expect more reform to come as part of future Budgets.
Increasing the maximum age of dependents & removing age limits of dependents with a disability
The Government have announced they will be increasing the age that dependents can remain on a family or single parent policy, from 24 to 31 years. They believe this will provide continuity of care for young Australians and will encourage them to continue with private health insurance until they turn 31, which is the age Lifetime Health Cover commences. Remaining on a family policy until 31 will allow the dependent to have a clear moment to decide whether they will maintain private health insurance.
The age limit for dependents with a disability will be removed completely. People with a disability will be given the flexibility to access more affordable cover – either at no or low cost under their family’s policy, rather than needing to purchase a stand-alone policy.
The Australian Government have planned for an implementation date of 1 April 2021. However, these announcements will be final once passed by the Senate. Full details of any confirmed changes will be provided in the coming months.
Extra funding to further develop the Medical Costs Finder
A funding enhancement has been allocated to the Medical Costs Finder – a website that helps consumers understand and compare the average cost of common specialist medical services. These enhancements are proposed to support upgrades to the website to display the fees of individual specialists, with doctors to voluntarily opt-in to the system and allow their data to be available for consumers.
Since the budget announcement, a delay has been placed on any further developments to the Medical Costs Finder website due to COVID-19. Professor Brendan Murphy, now Health Department Secretary, predicts any new information for the website will be made available by the end of 2021, at the earliest. He has expressed the Government will work with the medical profession on volunteering their fees and are ‘determined to make it work’.
Improving accessibility of home and community-based care
Home and community-based care for rehabilitation and mental health services will be made more accessible through private health insurance under the Government’s proposal. Services will be expanded to allow more patients to recover and rehabilitate at home - if it is their preference and is clinically appropriate - with the support of their doctor.
Recovering at home can be a preferred option for some patients, when safe to do so, and it does have a range of benefits including reduced hospital stays and quicker recovery time.
The Department of Health is currently working with the sector on these initiatives with a goal of implementing these reforms from 1 April 2021. More information will be provided when available.
