2023 Private Health Insurance Report Card

Australian patients are being shortchanged by private health insurance companies, which are collecting significantly larger profits while returning a smaller proportion of premiums to customers.

This week we released our 2023 Private Health Insurance Report Card, which shows the rebates for identical procedures still varies wildly between insurers.

In a media statement, AMA President Professor Steve Robson encouraged consumers to carefully consider which private health insurance option is best for them, with a focus on products that deliver treatment they are most likely to need in the future.

“Our report card highlights the importance for consumers to look closely at their options, as the benefits can vary dramatically between insurers for the exact same product,” Professor Robson said.

“For the uncomplicated delivery of a baby, we uncovered a dramatic 30 per cent variation of rebates between the highest and lowest paying insurers. That is a staggering $520 difference, which would understandably cause much frustration and confusion for patients when looking for insurance.”

Professor Robson said the report card also showed the need for a federal government mandate to be introduced that would require that every insurer returns a minimum amount to patient care each year.

In 2022–23, gross insurer surplus from hospital insurance was about 18 per cent of hospital premiums paid — an increase of $1.36 billion from the 2020–21 financial year.