Members Health has welcomed the new rules that will see the categorisation of all private health insurance policies including the 12-month transition period.
Health minister Greg Hunt announced the new rules last week. They will be implemented from 1 April next year, in time for next year's annual premium increase, with all policies required to comply with the new rules from 1 April 2020.
Members Health represents the 23 not-for-profit and member-owned private health insurers that cover around 1.7 million Australians.
“The new tiers are a very positive reform, they were designed to be cost neutral and will not impact the price of health insurance,” said Members Health CEO Matthew Koce.
“They enhance transparency across the marketplace, help make private health insurance easier to understand and empower consumers to make more informed choices about their cover.”
He said the 12-month transition period to fully implement the reforms will "ensure the smooth migration of members to the new range of policies."
“It is important this is not rushed and that consumers have time to shop around,” he said.
“The fact that the Australian Government continues to fully support private health and the interests of private health consumers highlights the value of the industry and benefits it offers.”
He continued, “Our funds pride themselves on their customer-first ethos and making sure their members have the best value cover possible.
“The introduction of these reforms, making private health insurance easier to understand, will make it much simpler for all Australian consumers to shop around, compare products and get the best value from their health insurance.”