2022 health insurance premium and product changes
Each year, private health funds review their range of covers
Every year in Australia, private health funds review their range of health covers, including the benefits they provide and the premiums required to cover these costs. This normally happens annually on 1 April; however, we know it’s been a tough few years, and to help alleviate the financial pressure, we’ve postponed this year’s premium changes until 1 November 2022.
Not only did we defer these changes, but nib is proud to announce our lowest premium increase in 20 years, averaging 2.66%1, which is below the 2.7% average industry increase2 – it’s just another way we make sure our members get value for money when it comes to their health insurance.
Our lowest premium increase ever
Keeping you healthy is our priority and to demonstrate our commitment to making healthcare affordable, we’re pleased to announce our lowest premium increase yet. In fact, most nib members now pay less than $3 per week extra for their health cover following these changes. The exact amount depends on your level of cover, and we were in touch with members in October with information specific to your policy. You can find out more about your own cover by logging into your member account or heading to your nib App.
COVID-19 has impacted all of us over the last few years, and it’s never been more important to keep physically and mentally healthy. That’s why we deferred this year’s price rise for seven months. So, instead of your new premium coming into play from 1 April 2022, it wasn't changed until 1 November 2022.
The importance of quality healthcare
We understand that premium changes are never ideal, and they’re not something we take lightly; however, the reality is that the cost of health and medical treatment continues to rise.
Because the cost of providing you with quality healthcare is constantly increasing, changes to premiums are required to ensure we’re able to continue to pay claims on behalf of all our members.
As well as this, we’re investing in more personalised care for our members and using new technology and targeted health management programs that empower our members to keep on top of their health. These include hospital and mental health support programs as well as rehab at home, with registered nurses on-hand to help support the individual needs of our members. For more information, visit our Health Management programs.
We have introduced the option to increase the maximum age of dependants allowed under a health insurance policy. This means a dependant can stay on their parent’s or guardian’s policy until they’re 31.
Despite the unique challenges we’ve faced from COVID-19, we continue to ensure we pay claims on behalf of our members when they require treatment or hospitalisation. In fact, during the 2021 financial year, nib paid a total of $1.8 billion on behalf of all members – that’s $5 million each day3.
When you do need to access healthcare, we work hard to make sure our members’ out of pockets are kept to a minimum. Our growing Clinical Partners program guarantees eligible nib members no out-of-pocket costs for knee and hip replacement surgery with selected healthcare providers. We also offer a MediGap program that aims to eliminate out-of-pocket expenses for our members when they seek specialist medical treatment in hospital4. Last year, 78% of nib members who were admitted to hospital paid no out-of-pocket costs for eligible MediGap items when treated by a medical specialist4.
How much did my premium increase by in 2022?
nib will increase our health insurance premiums by an average of 2.66%1, our lowest premium increase in 20 years. The majority of our members (almost 70%) now pay less than $3 per week more for their health insurance. This amount varies depending on your chosen product and level of health cover.
Members were notified of these changes in October 2022, however, the increase didn't come into play until 1 November 2022 because of the seven-month deferral.
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When did my premium change?
Normally your premium is adjusted from 1 April each year, but because we postponed this year’s price increase, you didn’t see any changes until 1 November 2022. We contacted eligible members of the premium increase postponement directly with more information.
What do members need to do?
The premium changes occurred automatically from 1 November 2022, and there’s nothing our members need to do.
Do these premium increases apply to all nib members?
These changes apply to nib members who are Australian residents and hold Hospital,
Extras or a combined cover.
I paid my premium in advance, what does this mean for me?
nib members can pre-pay for up to 12 months and receive the same premium, prior to any price changes. This means members who pre-paid for 12 months will still be entitled to the previous rate for the duration of the pre-paid period.
Why should I review my cover each year?
It’s so important to make sure that as your life changes, your health cover continues to meet your needs. That’s why we recommend you review your health insurance policy regularly to ensure it’s providing you, and your loved ones, with appropriate cover for the things you might need.
You can take a closer look at what you're covered for, your annual limits and your excess by logging into your member account.
Health insurance shouldn’t be set and forget; it is important to keep comparing your options as your health needs change. For more information, check out our article, when to review & update your health insurance cover.
For more tips on how to get the most out of your cover, head to our guide to saving money on your health insurance cover.
We’re here to help, so if you need further assistance call 13 14 63 to talk to one of our private health insurance experts.
1 Average premiums are not indicative of what every member may experience, and some products may offer either a lower or higher increase. Excludes any adjustment for the Australian Government Rebate.
2 Industry average provided by the Department of Health.
3Includes COVID-19, outstanding claims provisioning and Risk Equalisation.
4Specialists may agree to participate in MediGap, but this is not guaranteed. Always check before your procedure whether your specialist will MediGap for you.