Premium review
Premium changes came into effect on 1 October 2023.
Learn more about why premiums are reviewed annually by health funds below.
Each year health insurers review the cost of healthcare and use this information to adjust premiums. These changes usually take place in April, but Frank instead froze premium increases until 1 October 2023 in order to return further value to members.
Why are premiums reviewed annually?
Put simply, the cost of healthcare delivery continues to increase in Australia. Costs are driven by:
Increased cost of health service delivery
An ageing population and people living longer
Increases in chronic conditions
New medical technologies and treatments
Frequently Asked Questions
Health insurance premiums are reviewed because healthcare costs increase year-on-year. Health funds review their cover each year to ensure they remain sustainable and can meet future claim obligations of all members in the fund.
Healthcare costs are driven by a number of factors, including:
- Higher costs associated with new medical technologies and treatments
- An ageing population requiring higher levels of care
- Rates of chronic health conditions increasing
Health funds are required to justify a premium increase by submitting an application to the Federal Government for approval. All applications to increase premiums are first assessed by The Department of Health and the Australian Prudential Regulation Authority (APRA). The application is then sent to the Minister for Health and Aged Care to consider if the increase is necessary. If a proposed premium increase is found to not be in the public interest, it won’t be approved.
Learn more about private health insurance premium increases.
Premium changes come into effect from your first payment on or after 1 October 2023.
All members in the same state/territory pay the same premium for the same policy. Private health insurers cannot discriminate against members based on health status, claims history or age. This is a government requirement called Community Rating. This system is intended to keep health insurance fair and accessible for all Australians. This is in contrast with other insurance industries that use risk rating, such as life insurance or car insurance.
Learn more: Private Health Insurance Community Rating System
You can access a copy of your rate review communication by logging into your member area and viewing your most recent communications. In your member area, you can also update your preferred contact method.
COVID-19 lockdowns may have made it difficult for members to use their cover at times over the last few years. As a not for profit fund, we made the decision to put premium increases on hold for 6 months each time. This was an easy way for Frank to return value to members.
In the last financial year we returned funds to current, former and suspended members through the return of COVID-19 claims savings.
Check you’re only paying for what you might need. Ask us for a cover review – we'll go over your cover with you to help you choose a cover suitable for your circumstances. We have a range of policies to suit a variety of budgets and needs.
The past few years have demonstrated quality healthcare is more important than ever. Private health insurance can offer:
- Greater choice of provider/doctor/specialist
- Protection and peace of mind for members and their families
- Cover for services not covered by Medicare such as dental, physiotherapy and glasses under extras policies
- Access to extras benefits is a great way for people to proactively look after their health, such as making it easier to have annual dental check-ups.
