Today the Minister for Health has announced premium changes for private health insurance policies for 2014.
Medibank says the Minister's decision strikes the right balance between the rapid growth in health costs faced by all insurers and the impact of price changes on consumers.
Medibank Executive General Manager, Private Health Insurance, Mr Laz Cotsios said that the decision, which will see industry premiums rise on average by 6.2%, reflected the work Medibank was doing to manage cost pressures across the entire health sector.
"We are working hard to keep premium increases low and we are pleased that our average rise of 6.49% shields our members from the full impact of rising costs. Reflecting the growing demand for health services by our members, last year we paid out $4.73 billion on behalf of our members - a jump of seven per cent on the previous year - but our rate rise is lower than this."
"We don't like price rises and neither do our members so we are continually looking at ways to reduce costs while offering members better service and value."
Medibank has been recognised for the fourth year running by Canstar for 'Outstanding Value', offering superior benefits on extras products and unique member advantages such as the 24/7 health advice line.
Medibank acknowledged the pressures on household finances but stressed the value of greater choice and access to health services that private health insurance can provide and encouraged members who are concerned about their premium costs to speak with a representative and review their cover.
"Medibank has introduced a range of new health covers under its Medibank and AHM brands so now, more than ever, we can provide members with the widest choice of value and price, ensuring we meet customer expectations for comprehensive health cover and affordable prices."
"The cost of a policy relates to a variety of factors including the level of cover you require, the excess you are comfortable with and the services you wish to be included. We always encourage members to speak to us and to review their policies. Not only does it ensure members get the coverage they need, but for many individuals and families it identifies a more appropriate policy that leads to lower premiums and savings for the household."
Members can shield themselves from the premium rises (which will come into effect in April 2014) by pre-paying their insurance for up to 12 months at the current rates.