So turns out it’s Millennials pushing up the prices for us, Baby Boomers
For younger Aussies, health insurance seems to be one of those things that falls under the ‘I probably won’t use it’ pile.
However, the older you get, the more essential the right health cover becomes, which makes the fact that premiums are rising particularly troublesome for Aussies.
So, why are our health insurance premiums rising?
Well the are a number of reasons, such as our aging population and expensive new medical advancements. But its likely that it also has something to do with the fact millennials are waiting until later in life to take out private health cover. An iSelect survey found that 57% of young Aussies listed ‘saving to buy a home’ or ‘paying off a mortgage’ as their biggest financial priority* and it seems for many millennials health insurance falls into the ‘if and when I can afford it’ basket. As a result, the number of Aussies under the age of 30 taking out health cover has significantly decreased in the past five years.**
The health insurance industry relies on younger, healthier customers who are unlikely to claim taking out cover. This helps to balance out the cost of older customers who are more likely to claim.
So, millennials staying out of health insurance is not only putting a strain on Medicare and the public health system, it’s also likely to further increase private health insurance premiums for the rest of us. This puts more pressure on older Australians already struggling with the cost of private health insurance.
What better reason to review your health insurance and make sure you’re paying for the right cover, especially if you’ve been with the same health fund for a number of years.
iSelect tell us that they speak to an astounding number of customers who are still covered for pregnancy in their 60s, but not covered for joint replacement or eye surgery. What are you waiting for?
** In May 2017 iSelect commissioned a nationally representative consumer research study with Ipsos Australia to assess the attitudes of over 1,500 Australian adults towards private health insurance and Lifetime Health Cover (LHC) loading.
****Based on iSelect sales data comparing customers under 30 from 2012 to 2017.