Bupa keeps premium change below rise in claims
Health insurer Bupa announced it will have an average premium change of 3.18% from 1 April 2022. This is Bupa’s second lowest increase in 20 years and is again below the projected rise in cost in claims.
Bupa Health Insurance Managing Director, Emily Amos, said during the COVID-19 pandemic, Bupa has provided more than $315 million in support to customers including the recent return of $120 million in cash via our giveback program to customers.
“Given the ongoing uncertainty and evolving situation with the Omicron variant, we’re continuing to monitor very closely any additional support we may need to provide to our customers,” Ms Amos said.
“We remain committed to passing on savings to our customers resulting from the impact of COVID-19. We will continue to assess these impacts on claims in coming months, including any further money to be returned to our customers.”
Ms Amos said Bupa’s priority is keeping health insurance affordable for Australians by providing value for money for customers and continuing to support customers throughout the COVID-19 pandemic.
“We’ve worked hard to absorb costs, with the increase again less than the rise in healthcare costs and the growth in claims.
“Despite the lockdowns we’ve experienced in some parts of Australia, we’ll pay around $6 billion in claims for our customers hospital, medical and other care needs this year.
“We expect to pay even more than that next year with the costs of healthcare continuing to go up. We’re living longer and receiving better quality care, but it comes at a financial cost.
“It’s why we need to keep working with the Federal Government and health providers to lower the cost of medical devices and keeping health care affordable,” Ms Amos said.
The premium increase will come into effect on 1 April 2022. Bupa customers will be contacted individually ahead of that time with their individual premium adjustments which can vary depending on the type of cover and what state they are in.
“We encourage our customers to have a conversation with us to ensure they’re on the best product to suit their health and budget needs,” Ms Amos said.
During the COVID-19 pandemic, Bupa has provided ongoing support, including:
- $120m cash via our giveback program.
- $50 million financial hardship package in the form of premium waivers, policy suspensions and discounts.
- $134 million through a six-month premium freeze for all customers in 2020.
- $8 million by not passing on the October 2020 premium increase to customers suffering financial hardship.
- $5 million towards a bonus $200 one-off increase for mental health claims to support more than 2.2 million customers during the pandemic.
- $1 million by providing customers access to 28 by Sam Wood for three months at no cost.