AUSTRALIANS with private health insurance hospital cover are paying 71% more in out-of-pocket costs compared to five years ago, according to an analysis by Australian finance platform money.com.au.
The cost of in-hospital services in Australia has risen by 22% over the same period, with Medicare coverage increasing by 18%, and private health fund contributions by just 12%.
This means gap payments are rising three times faster than hospital costs in Australia, forcing patients to pay more from their own pockets.
Meanwhile, private health insurance premiums have increased by over 15% over the five years.
Sean Callery from money.com.au suggested these increases may lead Australians to reconsider their private health cover.
"Aussies are paying higher premiums for private hospital cover but are left covering a much larger share of medical bills than they were five years ago," Callery said.
"This is hardly what you'd call a great return on the significant investment individuals and families are making in private health cover," he added.
Callery also warned that people dropping private health insurance would put more pressure on public hospitals, creating a feedback loop.
"This could increase demand on already stretched public hospitals, leading to longer wait times for elective surgeries and other non-urgent treatments.
"It may create a cycle, where longer public wait times push people back to private health insurance, despite the rising costs, to access faster care and more options," he said. KB
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