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Newsletter Article


Major Reforms for Private Health Insurance in Australia

Correspondents: Aisha Gomez and Roosa Tikkanen, the Commonwealth Fund

The Australian government has announced reforms that aim to make private health insurance simpler and more affordable. The reforms will introduce standardized plans — gold, silver, bronze, and basic — that will make it easier to compare and choose coverage. Seniors are also expected to see cheaper premiums as a result of lower government-negotiated prices for implanted medical devices. To encourage younger adults ages 18 to 29 to sign up for coverage, the government will allow insurers to offer a 10 percent discount on hospital insurance premiums, as well as the option to expand existing coverage to include mental health treatment. In addition, health insurers will be able to pay for travel and lodging for Australians living in rural communities. More than half of all Australians currently have private health insurance.

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