2022 health insurance premium and product changes

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Each year, private health funds review their range of covers

27 March 2022 5 minute read

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 are we deferring 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 will pay less than $3 per week extra for their health cover following these changes. The exact amount you’ll pay will depend on your level of cover, and we’ll be in touch with members from March with information specific to your policy. In the meantime, you can find out more about your cover by logging into your member account or heading to your nib mobile 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’re deferring this year’s price rise. So, instead of your new premium coming into play from 1 April 2022, it won’t be 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.

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.

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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 will my premium be increasing 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%) will pay less than $3 per week more for their health insurance. This amount will vary depending on your chosen product and level of health cover.

Members will be notified of these changes in February, however, the increase won’t come into play until 1 November 2022 because of the deferral.

Email is the fastest and most secure way to receive important updates and account information. Make the switch to email today.

When will my premium change?

Normally your premium is adjusted from 1 April 2022, but because we’re postponing this year’s price increase, you won’t see any changes until 1 November 2022. We'll contact eligible members of the premium increase postponement directly with more
information.

What do members need to do?

The premium changes occur 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 or email [email protected].

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.