People are paying 25% more in medical gaps compared to a year ago

author-avatar By on May 20, 2020
People are paying 25% more in medical gaps compared to a year ago

The prudential watchdog has revealed the average medical gap paid by Australians was $193.42 - up 24.4% on a year ago.

The Australian Prudential Regulation Authority (APRA) yesterday revealed where gap was paid, the average figure was $193.42 in the March quarter - up by a quarter on March 2019 figures.

Meanwhile, the average out-of-pocket expense incurred for hospital treatment was $324.04, up 2.5% on the March 2019 quarter.

The biggest average gap payments were in the plastic/reconstruction sector, where 38% of the cost was covered by gap payments with an average gap of $414. 

More broadly, 9,760 people ditched their policies over the quarter, representing a 0.2% fall on the December quarter. 

The largest fall in policies held was for people aged 30-34, and these figures mostly represent data from before many elective surgeries were banned under COVID-19 lockdowns.

In total, 43.8% of the Australian population were covered by hospital treatment cover.

Industry-wide, health insurers gained $25 billion in premium revenues in the year ending on the March 2020 quarter, and paid out $21.51 billion in fund benefits.

While these figures are up on 2019's year ending March quarter, benefits paid are outpacing revenue increases - benefits paid are up 3.68%, while revenues are up just 2.45%. 

This has also led to a 28.44% decline in net profit after taxes - down to just $970 million industry-wide.

Still, however, this is a discrepancy of $3.49 billion in premiums to benefits paid ratio in the year ending March quarter.

Price increases have slowed over the past five years, and in April last year the industry was mandated to have a 'Gold, Silver, Bronze, Basic' categorisation system to aid consumers in finding the right policy.

In April this year, many providers' premium rises were nixed as COVID-19 took hold of the Australian economy.

Premiums were originally slated to increase an average of 2.92% - the lowest rise since 2001, the year when premiums actually decreased on average.

Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.

Provider
Total
interest
rate p.a.
Intro
interest
rate p.a.
Intro
term
Base
interest
rate p.a.
 
Online Saver
1.55% 1.20% 4 months 0.35% Go to site
1.75% 1.75% 4 months 0.00% Go to site
2.20% 1.40% 4 months 0.80% More details
2.00% 1.45% 4 months 0.55% More details
2.00% 0.65% 4 months 1.35% More details

*Data accurate as at 07 August 2020. Rates based on a savings balance of $10,000. Sorted by total interest rate. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed.


Latest Articles

author-avatar
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

Collections:

Get free insights & tips monthly

By subscribing you agree to the Savings Privacy Policy

Loading data please wait...

{{returnData.productName}}

Overview

Current Rate

{{returnData.currentRate | percentage:2}}

Comparison Rate*

{{returnData.comparisonRate | percentage:2}}

Rate Type

{{returnData.rateType}}

Advertised Rate

{{returnData.advertisedInterestRate}}

Comparison Rate*

{{returnData.comparisonRate}}

Monthly Repayment

{{returnData.monthlyRepayment}}

Interest Type

{{returnData.interestType}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Bonus Interest Rate

{{returnData.bonusInterestRate | percentage:2}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Introductory Rate

{{returnData.introductoryRate | percentage:2}}

Introductory Term

{{returnData.introductoryTerm}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Term

{{returnData.term}}

Advertised Interest Rate

{{returnData.advertisedInterestRate | percentage:2}}

Interest Frequency

{{returnData.interestFrequency}}


Fees and Features

Ongoing Annualised Fee

{{returnData.annualFee}}

Upfront Fee

{{returnData.upfrontFee}}

Offset Account

Redraw

Principal & Interest

Interest Only

N/A{{returnData.interestOnly}}

Max loan to value ratio (LVR)

{{returnData.maxLVR | percentage:0}}

Lump sum repayments

N/A

Additional repayments

Maximum Loan Term

{{returnData.maximumLoanTerm}}

Upfront Fee

${{returnData.upfrontFee}}

Ongoing Monthly Fee

{{returnData.ongoingFees}}

Early Repayment Fee Applies

N/A

Vehicle Types

{{returnData.vehicleType}}

Maximum Vehicle Age

{{returnData.maximumVehicleAge}}

Pre Approval Available

N/A

Online Application

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Minimum Deposit

{{returnData.minDeposit | currency : '$' : 0}}

Upfront Fees

{{returnData.upfrontFee | currency : '$' : 0}}

Annual Fees

{{returnData.annualFee | currency : '$' : 0}}

Notice Period to Withdraw

{{returnData.noticePeriodToWithdraw}}

Online Application

N/A

Automatic Rollover

N/A

Maturity Alert

N/A