Affordability of private health insurance for Tasmanians is always at the forefront of consideration when setting premiums.
As a not-for-profit Tasmanian-based health fund, we only increase premiums to cover claim costs. We do not increase premiums to pay shareholders or to boost profits.
In the last financial year, we returned 92 per cent of all premiums paid back to members as benefits compared to just 84 per cent by the big three for-profit funds.
Over the past few years St.LukesHealth has experienced substantial uptake of our Super Extras product in mainland states as consumers begin to shop around and look at better value health insurance options outside the larger national funds, particularly in Victoria and New South Wales.
Due to this shift in our membership base, it was unsustainable for the fund to continue to offer our Super Extras product at a single national price.
In response, we have introduced pricing based on the customer’s state of residence which reflects the costs of providing our product in that state.
What we have found is that members in NSW and Victoria are accessing services more often and as a result the overall benefits paid to members is much higher.
This see’s NSW members receiving a 45.05 per cent rate increase for Super Extras cover (1.4 per cent of the fund’s policies, 482 policyholders), while those in Victoria experienced a 35.03 per cent rise (1.9 per cent of the fund’s policies, 652 policyholders).
The move to state-based pricing provides our overall membership with a level of fairness, and ensures members are paying a premium that is aligned to where they reside and are not subsidising other markets.
As a result, our Super Extras policyholders residing Tasmania have received a 4.46 per cent rate increase since April 1, 2018, equating to a $3 rise per month for singles or $6 for families before the rebate.
To complement our Gap Free Preventative Dental benefits, we have also increased the benefits in the Super Extras product to ensure our members now receive better cover for dental services like extractions, fillings and crowns, while eye therapy, remedial massage and physiotherapy have also had a benefit increase.
St.LukesHealth is a proud Tasmanian company that takes the health and well-being of its members across the country seriously.
We strive to offer the best mix of cover and services to suit the individual needs of our members.
Paul Lupo, St.LukesHealth CEO