What percentage premium rate reduction will I receive?

We will be applying a 15% premium rate reduction on the base rate of your Hospital cover, and a 30% premium rate reduction on the base rate of your Extras cover, for the insurance period covering the two months from 1 May to 30 June 2020.

What do I have to do to get the premium rate reduction?

Nothing. We will be applying the rate reduction automatically to your policy on 1 May 2020.

How will the reductions be applied to my policy?

If you have a premium payment due between 1 May and 30 June 2020, we will automatically reduce the premium to be paid and advise you of the reduced amount. 

If you have pre-paid for a period beyond 30 June 2020, we will extend the period of your cover and there will be a pro-rated reduction of your next premium payment.

 

Will I still get the Australian Government Rebate?

If you are eligible for the government rebate, this will continue to be applied to your reduced premium.

Can I lock in these reduced premium rates and pay a year in advance?

No. These reduced premiums are for a specified time period from 1 May to 30 June 2020.

Can I get a refund instead of an extended coverage period, if I have already paid in advance?

Yes, our Member Service team can arrange that for you.

The premium rate reductions seem low compared to the expected reduction in surgery?

The premium rate reductions are less than the expected reductions in claims during the May-June period, because once elective surgery suspensions are lifted, we expect a higher than normal level of claims for a time, as patients return who have been waiting through the crisis. As a regulated financial institution, we need to consider our regulatory and capital obligations. 

The rate reduction is in addition to the deferred rate rise, so is based on premiums as at 1 April 2019.

Will you be making further premium rate reductions?

We will stay abreast of developments and respond accordingly. Like everyone, we are hopeful of a fast return to normality.

Could this initiative, as well as the previously announced deferral of the 1 April 2020 premium increase, place Doctors’ Health Fund in financial stress?

No. Doctors’ Health Fund is operated in a financially disciplined manner and we comply with all the requisite capital regulations. Importantly, we are part of Avant Mutual, a financially strong, like-minded organisation that supports our mission and our members. 

Do you expect a larger premium increase next April?

Our premiums are established at the lowest level possible to meet our obligations and sustain our business into the future. There are many unknowns which contribute to premium rises, and at present, we cannot determine the outcomes with any accuracy. In terms of the return of claiming following the suspension of elective surgery, we expect that to be gradual over time. However, the length of time for the suspension will play a big part in this, as well as how the suspension may have impacted the health of our members.