FAQs
on yourpremium changes

Premium changes

• Why is my premium changing?
• When will my premium change?
• When will I hear about my new premium?
• My premium increased more than the national average percentage. Why did this happen?
• Why has my premium gone up when my benefits haven't increased, and I've made few or no claims?
• Why has HCF sent me a Private Health Insurance Statement with my premium review?

Making premium payments 

• Can I lock in my current health insurance premium, and how do I do this?
• How can I change my payment frequency?

Support HCF is giving members

• How is HCF making healthcare affordable and supporting members during challenging times?
• What is HCF doing to lower the cost of health insurance?

Australian Government Rebate 

• How is the Australian Government Rebate on private health insurance calculated?
• Why does the government give back less in the Australian Government Rebate on private health insurance each year?

Getting in touch

• I have more questions – how can I get in touch?

Why is my premium changing?

While we do everything possible to keep premium increases to a minimum, there are several reasons premiums go up including:

• While COVID-19 has meant some health treatments have been delayed, the average cost of health services continues to rise at an unprecedented rate.
• Almost half of Australians are living with chronic health conditions, which are costly and complex to manage.
• Advances in health technologies and treatments offer better outcomes but often cost more.
• The incidence and cost of treating mental health concerns are increasing.

For more on what we’re doing to make healthcare affordable and accessible for our members, visit Why health insurance premiums go up.

When will my premium change?

Your first premium payment from 1 September 2023 will reflect your new premium amount. You won’t be charged if you’ve already locked in and pre-paid your health insurance premium. Find out more about how to lock in your premium.

When will I hear about my new premium?

We’ll contact you by your preferred way of hearing from us, either by email or letter by mid-August 2023.

You can also find information about your premium by:

• using the My Membership app and tapping on Cover Details
• logging in to online member services and going to My Cover then Cover Details.

My premium increased more than the national average percentage. Why did this happen?

The Australian Government calculates the national average based on the premium increases it approves for all Australian health funds.

Because your premium increase relates to your chosen level of HCF cover, it may be different to the national average (or the HCF average). Your premium increase reflects the balance between managing member payments against the claims we pay out for all members on your level of cover in your state or territory.

Why has my premium gone up when my benefits haven't increased, and I've made few or no claims?

Private health insurance in Australia is community-rated rather than risk-rated. This means you pay the same premium for the same level of cover as everyone else in your state, regardless of your age, health status, or the number of claims you make. This helps make private health insurance more accessible for everyone.

The reason premiums increase is to cover the rising costs of healthcare and make sure our capital is sufficient to cover the benefits for our members over the coming year. This increase is the balance between the premiums we receive from members on your level of cover, versus the claims we pay out to members on the same level of cover.

Why has HCF sent me a Private Health Insurance Statement with my premium review?

Your letter or email includes your Private Health Insurance Statement, which is a general summary of product features and what’s covered, as well as any restrictions, waiting periods, exclusions, excesses and limits. The dollar amounts and payment frequency on these statements may differ from the premium change information because they don’t reflect any government Rebate, Lifetime Health Cover loading and or discount (where applicable).

Can I lock in my current health insurance premium, and how do I do this?

Yes, we offer a generous pre-payment option to let you lock in your current premium for up to 18 months. To lock in your current premium for 18 months, we’ll need to receive your payment before the below deadlines.

If you’ve already pre-paid your policy and don’t wish to make an additional pre-payment, you don’t need to do anything further as your policy will be paid in advance to your current date.

How can I change my payment frequency?

Depending on your policy, you can automate your premium payments at a frequency that suits you. This can be weekly, fortnightly, monthly, quarterly, half-yearly or even yearly, depending on what cover you hold. You can do this by:

• logging in to the My Membership app or online member services and going to Payments and tap on Edit Payment Details
• calling us on 13 14 39 (Mon to Fri: 8am to 8pm, Sat: 9am to 5pm AEST/AEDT)
• visiting an HCF branch.

How is HCF making healthcare affordable and supporting members during challenging times?

We’re committed to helping our members with the rising cost-of-living pressures and doing everything we can to keep the cost of health cover as low as possible. Our focus is where it should be, on providing great value health cover to our members, not profits for shareholders.  

Since the start of the pandemic, we’ve provided over $536 million in total COVID-19 member benefits and support, including:

• freezing premium increases 3 times over 3 years
• premium relief for all eligible members experiencing financial hardship
• free HealthyMinds mental health check-ins for eligible members^*
• COVID-19 related hospital admissions covered at no extra cost on all hospital policies^{^}
• an expanded range of telehealth services, mental health and wellbeing programs and in-home hospital treatments for eligible members
• $309 million in cashbacks to eligible members.

We tailor HCF offerings to provide members with choice, meet their needs and advocate for things they’ll benefit from most, like greater transparency and guidance around how to minimise out-of-pocket costs. We’ve recently implemented government reforms to keep dependants covered until they’re 31, ensuring younger people stay protected and helping ease cost-of-living challenges for many households.

Looking ahead, we’re also invested in creating a healthier future for our members through research, innovation and investment. This includes offering eligible members fast and easy access to care when and where it’s needed through our range of innovative health and wellbeing programs (including free mental health support^*), telehealth services and a ground-breaking 5-year strategic collaboration with Ramsay Health Care to give members more treatment options, including some options from home for eligible members⁺.

What is HCF doing to lower the cost of health insurance?

Affordability continues to be an issue across the health system and members can be assured we’re doing everything possible to keep premium increases to a minimum. We deliver great value cover and access to timely, high-quality health services. We tailor our offerings to meet member needs and advocate for things our members benefit from most, like greater transparency around out-of-pocket costs. We’ve recently implemented government reforms to make healthcare more affordable for families by giving them the option of keeping dependants covered until they’re 31.

We’re also pleased to have launched our strategic collaboration with Ramsay Health Care, Australia’s largest private hospital operator. This first-of-its-kind agreement represents our ongoing commitment to making health cover more affordable and accessible as well as ensuring the long-term sustainability of the sector through the funding of alternative treatment options, such as at-home care.

Here at HCF, we also work closely with industry groups and government to ensure we have a sustainable health system and keep the costs of health cover as low as possible by:

• reducing out-of-pocket costs with our handy Participating Provider tools to help members make informed choices about their healthcare and what they can expect to pay  
• working closely with healthcare providers to make it easier for eligible members to access the services they need and get the best value from their cover including in-home care⁺ and hospital substitution programs  
• offering our No-Gap extras providers so eligible members can get 100% back on selected extras services and general treatment like dental services, optical, a first visit to podiatry and physio^#
• driving reform through partnerships with industry groups and government to influence policy reform to lower healthcare costs and average premium increases
• investing in the future of healthcare through the HCF Research Foundation and HCF Catalyst program to drive research and innovation in the delivery of affordable and accessible health services for our members and all Australians.