You should have received communication from us by now about an increase to your RBHS premiums from 1 April 2021. If you cannot find anything in your inbox or mailbox from us, please let us know as soon as possible.
In short, we need to be able to pay members’ claims. To do that we need to keep up with medical costs that are growing every year, as well as having more people claiming for these services.
We have already seen a bounce back in claims towards the end of 2020, evidence of the Australian success in responding to the pandemic.
In fact, last financial year we paid over $14.2 million for member benefits out of $16.4 million in premiums (or 86.7% of our revenue).
The good news is that this is we are not-for-profit, which means we only charge what it costs to pay claims and run our fund.
We try to keep our costs down in other ways too, such as:
- running as efficiently as possible so we have low administration costs
- working with the Australian Health Service Alliance (AHSA) to have more bargaining power with hospitals and doctors
- working with industry bodies to push the Government for changes that make healthcare more affordable for everyone
There are plenty of reasons that we believe private hospital cover is important. Things like:
- knowing you can have access to private hospitals with state-of-the-art facilities
- being able to choose your doctor
- not having to spend months (even years) on a public hospital waiting list by going into a private hospital
- if you earn over the threshold for Medicare Levy Surcharge (currently $90,000 for singles and $180,000 for families), you may save tax by not having to pay the Medicare Levy Surcharge.
- avoiding a Lifetime Health Cover loading (by having hospital cover before you turn 31)
Besides, hospital can be very expensive and that is why having health cover is valuable. The table below shows some of our claims paid on behalf of members in the 2020 financial year:
|Hospital claims paid 2020 financial year|
|Admission reason||Total benefit paid|
|Lung and chest||$46,000|
|Hospital psychiatric services||$34,080|
|Pregnancy and birth||$12,710|
When you think about health insurance, it is important to think about more than just the cost. Health insurance is about giving you more choice for your healthcare, less time waiting for the services you need and (most importantly) the peace of mind to know that you will be looked after when you need it most.
If you get a Government Rebate, the increase to the amount you pay for health cover is made up of two things – an increase to our premiums and a decrease in the rebate percentage the Government pays towards your cover (although the dollar amount of the rebate does increase due to the premium rise). If you want the exact percentage of your rate increase, it is important to take the reduced Government Rebate into account.
We only ever increase membership payments by what it costs to pay claims and keep our fund running. All health fund increases are reviewed and approved by the Government.
If you have paid in advance you will not have to start paying the new amount until your next payment is due. For example, if you are paid up to 4 May 2021, you will start paying the new amount from 5 May 2021.
For more information, please call us.