Many in retirement are travelling comfortably, with three key factors contributing to their happiness – good physical and mental health and enough money to enjoy life.
Perhaps the assumption that markets are still anchored by predictable economic policies needs to be challenged. For the first time since the fall of the Berlin Wall, political volatility – once background noise – is potentially reshaping investment risk at a structural level.
Seniors feel the pinch with rising private health premiums
For seniors, the headline figure was reassuring – on average, annual private health insurance premiums were only rising 3.73 per cent from April 1.
But digging a little deeper into that number had them quickly discovering that four of the five big insurers – NIB, Bupa, HCF and Medibank – had increases above the average at 5.79 per cent, 5.1 per cent, 4.95 per cent and 3.99 per cent, respectively. Only HBF, at 2.8 per cent, was below the average.
The lowest increase was from the Health Insurance Fund of Australia at 1.91 per cent while the highest was Police Health at 9.56 per cent.
The Minister for Health and Aged Care, Mark Butler, said a “thorough” government process – insurers were asked to resubmit their claims three times before the 3.73 per cent increase was approved – ensured a better deal for the 15 million Australians with private health insurance.
“In December, I wrote to every single one of the 29 insurers asking that they sharpen their pencils and provide us with an increase that was more in the interests of their members.
“Based on the resubmissions, I was not prepared to ‘tick and flick’ their asks and instead asked them to resubmit again. We’ve now ensured a better deal for all these Australians.”
What Butler did not spell out is that this average figure of 3.73 per cent is the biggest increase since 2018, following a 2024 increase of 3.03 per cent and a 2023 increase of 2.9 per cent. It should be added that Peter Dutton, as Health Minister, oversaw the biggest increase in two decades with a 6.2 per cent rise. It was announced on Christmas Eve.
If Butler is hoping the government has put the vexed issue of private health insurance premiums to bed, he might have to think again with National Seniors Australia (NSA) again calling for a full review of the private health system and an increase to the private health insurance (PHI) rebate for low-income earners as priorities for the upcoming federal election.
Rising PHI premiums significantly impact older people, says NSA chief executive officer Chris Grice. Many develop health conditions but experience reduced income as they move from work to retirement. This means affordability is paramount.
“NSA research shows private health insurance is the second biggest concern for seniors behind cost of living. While most people need private health, rising premiums and out-of-pocket costs significantly undermine its value. As insurers and specialists point the finger at each other seniors are left caught in the crossfire.
“Concerns about the value of private health interventions have prompted NSA, in our federal election priorities, to call on candidates to support an in-depth independent inquiry into the private health system. Despite several reviews, nothing has changed. Private health insurance holders continue to face premium increases, product limitations and rising out-of-pocket costs.”
NSA research shows older people who are single, on the age pension or with limited savings are less likely to hold health insurance. While older people support private health insurance, many keep it begrudgingly.
“The risk for government is older people drop their insurance, placing pressure on the public system. It’s time for an independent review of private health to make healthcare more accessible and affordable for older Australians.
“We are also calling for an increase in the PHI rebate for people on lower incomes to help maintain cover and avoid being forced into the public health system. Research shows 68 per cent of older people have gone without or hesitated to access essential healthcare because of cost.”
Grice says that to help manage costs, people sadly put up with pain and illness, stretch out the time between appointments or prescriptions, go without one medicine to pay for another and wait for the condition to worsen to warrant transport and hospitalisation because it’s free.
“This can lead to all kinds of health and wellbeing issues including untreated problems, undiagnosed conditions, worsening symptoms and mental health impacts,” he says.
