Gen Y supports discounted health cover
Young Australians would take out health insurance if it was cheaper.
Applying a discount to private health insurance might entice young Australians to take out cover, according to new research.
The survey found that 60% of Gen Ys would take out health insurance earlier if they were offered a discount for signing up before they turned 30.
The concept of a discount for taking out private health insurance early and getting a discount is not new, with the idea being thrown around for the past couple of years. There was a pre-budget submission by Private Healthcare Australia (PHA), which had various recommendations for how the scheme would work.
The proposal found backing from major health fund Bupa, which supported an initiative that would reward young Australians for taking out private health insurance before the age of 30 with a discount of 2% for every year they held hospital cover. The discount would be set with a maximum of 10%.
Locking down those aged between 25 and 29 is a real strain for the private health insurance sector. Since 2014, the amount of Australians in that age bracket with hospital cover is down by almost 7% (-6.72%), while those with extras cover in that age bracket are down less than 2% (-1.79%).
Conversely, those in the next age group (those aged between 30 and 34) have seen an increase in people taking out hospital cover (3.36%), which is probably due to this group needing cover to avoid being stung by the lifetime health cover loading (LHC).