[Rachaelxxx]

I've had private health insurance for years, purely for obstetrics reasons and this year I'm entering the work force full time and for the first time we can actually afford private health insurance for the whole family.

Some may argue that this should have been a priority, but to date we've been lucky not to have really needed private insurance for the girls and my husband. My husband is 41 and will be penalised 11% for joining (2% premium for every year over 30).

I don't understand that logic, I think it's a bonus anytime anyone comes on board with private health insurance. If anything I thought they would have been offering incentives for late comers and I know the government bought this legislation in, not private health insurance companies, but it doesn't make a lot of sense to me.

[PrincessPeach]

I think it may have something to do with the social thought process of older people = more health complaints.

Also I've come accross a number of people who are joining private health simply to have an operation or something done in the private secotr, becasue it's actually quicker from them to serve out the waiting periods then to wait in the public system.

Or they are joining to avoid paying medicare surcharge.

This post has been edited by PrincessPeach: 24/01/2013, 09:50 AM

[ellebelle]

Very few of us claim for the hospital component before we are 40. There was an article recently, stats which I don't remember exactly, but something along the lines of claims being very skewed to those over 65. Basically, the govt has worked out a cut off where it is felt that we are contributing long enough to keep the system viable, and the line in the sand is 30. I'm in my early forties and except for obstretics have had no need for the cover either to date. It's not a "bonus" that others come later and then start claiming sooner - it's a drain.

[rosiebird]

It's quite simple economics. Your husband saved money by avoiding paying PHI while he was young and statistically less likely to need it. Now he is older and more of a liability to the PHI company, they need to recoup the costs.

[sandgropergirl]

Pretty straight forward. If you had health insurance for the years and not used it you have earned the insurer money. You now want to enter at a time when it's likely you will cost more than you pay. Same as insurance for young drivers costing more than experienced ones. Young people have mre bungles. Older people cost more in th health system

[Lolpigs]

It was done by Howard to force people out of the public system under the guise of doing something positive.

This was instead of putting more money into public hospitals.

There isn't much other reasoning behind it. Obstetrics is a joke because of the massive out of pockets that you have, which means you are financially better off using the public system.

[bebe12]

Hi,

I wish you could get out of it if you could prove that you could not have afforded it before you join.

Ie before i remarried i was working parttime and studying and getting not even a $1 a day from exh for DD. During those 2 years of 31-32 i could not afford it, but now am stuck with surcharge, as apposed to people earning fulltime wage.

I am now on Maternity leave and for last 5 years have paid PHI, as i believe it is good for our family, but some individuals aren't earning enough to fork out cover for something they will likely not use. especially single parents.

[YodaTheWrinkledO...]

Very few of us claim for the hospital component before we are 40. There was an article recently, stats which I don't remember exactly, but something along the lines of claims being very skewed to those over 65. Basically, the govt has worked out a cut off where it is felt that we are contributing long enough to keep the system viable, and the line in the sand is 30. I'm in my early forties and except for obstretics have had no need for the cover either to date. It's not a "bonus" that others come later and then start claiming sooner - it's a drain.

this

It's quite simple economics. Your husband saved money by avoiding paying PHI while he was young and statistically less likely to need it. Now he is older and more of a liability to the PHI company, they need to recoup the costs.

and pretty much this. And people were given HEAPS of warning that they would be penalised if they didn't have private hospital cover by the time they are 30. So it shouldn't come as a surprise. Choose not to have private hospital cover after the age of 30, then you are choosing to penalised if you decide to sign up when you are older and are just going to cost the insurer a lot of money.

DH & I signed up at 30 - cheapest policy we could lay our hands on. We did it to avoid being hit with a surcharge later in life. Signing up when you are in your mid-50's whacks a big penalty on to the premium.

[Percoriel]

It sucks for people like us who have been out of Australia for most of our 30's and now into our 40's. We'll be penalised for not being in Australia. Which sucks really.

[wannabe30]

It sucks for people like us who have been out of Australia for most of our 30's and now into our 40's. We'll be penalised for not being in Australia. Which sucks really.

I notified my health fund before we left, maintained insurance in my country of residence while I was out of Australia, and then rejoined my Aussie fund when I returned. They treated it as though I had never left.