Aussies are dumping gold-tier health insurance as premiums continue to soar
More glitch than gold? Doctors have revealed the number of abandoned gold-tier policies has doubled over the last 16 years.
In a recent report, the Australian Medical Association (AMA) noted that between 2008 and 2024, health insurance premiums had more than doubled in cost.
As a result, approximately 360,000 Aussies have ditched cover since the start of the COVID-19 pandemic.
"Runaway insurance premiums, low-value offerings and shady tactics like product phoenixing leave customers facing tough choices about the level of cover they can afford," said AMA president, Danielle McMullen.
"These trends show that private health insurance is becoming less affordable for many Australians – and we are already seeing the drastic effects of this, with at least 14 private maternity units closing over the past five years."
The AIA has since pushed the Federal government to instruct insurers to return a minimum of 90% of premiums back to consumers and for an independent regulator to reevaluate how premiums are calculated.
Several health insurers have already begun submitting their premium proposals to Federal Health Minister, Mark Butler, for evaluation.
However, policy holders won't see the changes until April next year.
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Don't ditch, switch
Many Aussies opt into a gold-tier policy for a specific purpose, as these policies provide the most comprehensive level of cover, though they are subject to waiting periods.
Things like pregnancy, birth or reproductive services, kidney dialysis and weight loss surgery are some of the many categories that aren't covered under any other policy tier.
Rather than abandon your cover and the waiting period you've served so far, why not switch to a better value policy?
Under the Private Health Insurance Act 2007, health insurers cannot subject you to an extra waiting period if you switch to a new policy that offers the same level of benefits as your old policy.
Cut costs with a cheaper policy today
To find out if you could be getting more bang for your buck, take our private health insurance quiz to compare gold-tier policies.
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