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2019 contribution rate rise FAQs

Why are my contribution rates rising?

In short, we need to be able to pay contributors’ claims. To do that we need to keep up with medical costs that are growing every year, as well as having more contributors claiming for these services.

The good news is that this is our lowest contribution increase for seven years. 

We try to keep our costs down in other ways, too, such as:

  • running as efficiently as possible so we have low administration costs
  • working with the Australian Health Service Alliance (AHSA) to have more bargaining power with hospitals and doctors
  • working with industry bodies to push the Government for changes that make healthcare more affordable for everyone

Contribution increase and the Government Rebate 

If you get a Government Rebate, the increase to the amount you pay for health cover is made up of two things – an increase to our contribution rates and a decrease in the rebate percentage the Government pays towards your cover (which onemedifund has no control over). If you are wondering about the exact percentage of your contribution rate increase, it is important to take the reduced Government Rebate into account. 

Why is the increase above the inflation rate?

Put simply, healthcare and medical costs are rising faster than CPI (inflation). We know household budgets are tight for a lot of people and we can promise you that we are always looking for ways to keep costs as low as possible while still giving you great value and service.

How do you decide how much you increase contributor payments by?

Some of the major considerations include increasing contribution rates by what it costs to pay claims and what it costs to keep onemedifund running. All health fund increases are reviewed and approved by the Government. 

What if I have paid in advance?

If you have paid in advance you will not have to start paying the new amount until your next payment is due. For example, if you are paid up to 14 November 2019, you will start paying the new amount from 15 November 2019.

Why should I keep private hospital cover? I can go to a public hospital for free.

There are plenty of reasons why we think private hospital cover provides considerable value. Things like:

  • knowing you can have access to the best private hospitals with state-of-the-art facilities and it will be much more affordable than without health cover
  • being able to choose your doctor
  • not having to spend months (even years) on a public hospital waiting list by going into a private hospital
  • if you earn over the threshold for Medicare Levy Surcharge (currently $90,000 for singles and $180,000 for families), you may save tax by not having to pay the Medicare Levy Surcharge
  • avoiding a Lifetime Health Cover loading (by having hospital cover before you turn 31)

When you think about health cover, it is important to think about more than just the cost – it is about giving you more choice for your healthcare, less time waiting for the services you need and (most importantly) the peace of mind to know that you’ll be looked after when you need it most.

Want more information?

Call us on 1800 148 626