Are You Being Wronged by Your Health Insurer? See Why Complaints Are Skyrocketing!
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Are you frustrated with your health insurer? You're not alone. Complaints against private health funds have surged in recent years, leaving many Aussie seniors questioning if they're getting value for money*.
The latest ‘State of the Health Funds Report’ from the Commonwealth Ombudsman revealed a whopping 26.8 per cent increase in complaints over the past year.
So, what's behind the rising tide of dissatisfaction? Let's take a deeper look at the key issues causing complaints to spike.
The Alarming Rise in Complaints
The Ombudsman's report showed a staggering 27 per cent increase in complaints about private health insurance in 2022-23. This surge can be attributed to several factors.
The Medibank Data Breach: The massive data breach at Medibank in October 2022 resulted in the theft of personal information from nearly 10 million customers, leading to a surge in complaints to the Ombudsman's office.
Cancellation Issues: A rise in cancellation complaints, particularly related to Peoplecare Health Limited (Allianz), contributed to the increase. Peoplecare, which provides health cover for overseas visitors and students, experienced a high volume of cancellation and refund requests as pandemic travel restrictions eased.
Premium Hikes Outpacing Inflation: Kate Browne, Compare Club’s Head of Research*, had this to say: ‘It’s understandable why people are dissatisfied with their health fund,’ explaining this happens ‘when premiums rise higher than inflation, but the service older Australians receive doesn’t match the price.’
She continued, ‘Everybody’s got a different perception of what good looks like, so the one question health fund members need to ask is, do you feel you’re getting value for money from your insurer? Loyalty is a two-way street. If you’re happy and are paying a fair price, great, but don’t be silent if you’re not.’
Which insurers received the most complaints?
Looking at raw numbers, Medibank came out ‘on top’ of the complaints table, with 29.5 per cent of all complaints (27.1 per cent market share). This placed them ahead of BUPA (23.7 per cent complaints with a 24.9 market share), HCF (13.5 per cent with a 12.5 per cent market share), and NIB (10.1 per cent with a 9.6 per cent market share).
Others ranking high on the complaints list include:
Australian Unity – 4.7 per cent (2.2 per cent market share),
HBF – 3.7 per cent (7.7 per cent market share), &
Teachers Health – 2.3 per cent (2.6 per cent market share).
What does market share mean in this context? The report states that 'where an insurer’s share of complaints was higher than its market share, this indicates that members of that insurer were more likely to complain than those of other similar sized insurers.'
According to Ms Browne, the report ‘highlights just how confusing Aussies find health insurance – even those who’ve held it for decades’.
‘My advice would be if you’re not sure about anything on your policy, ask … your fund, broker or expert*. The more informed you are, the more satisfied you’ll be when you find a good policy.’
How to change insurers*
If you feel unhappy with your health insurer, know that you have options. You can try reaching out to customer service to explain exactly where you see room for improvement. If you’re still unsatisfied, don’t hesitate to switch providers* or lodge a formal complaint.
One of the easiest ways to ensure you’re getting a good deal is to use an expert comparison service*. Compare Club is one of our long-term partners* with whom we have personally compared health insurers! You can read about Maddie’s experience here*.
The team at Compare Club* will make sure you have the health cover you need while paying a price you’re comfortable with*.
You get the peace of mind that comes with working with trusted professionals who have the years of experience* needed to navigate the complicated health insurance system and keep you from any further confusion.
You won’t lose anything by comparing; it’s completely free, and you only stand to save*! After all, if you don’t like the quote you receive from Compare Club*, you don’t have to do anything.
Have you had reason to complain against your health insurer, or have you recently changed insurers? Were you satisfied with the outcome?
Disclaimer: Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
*Please note, members, that this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We do this to assist with the costs of running the SDC. Thank you!
The latest ‘State of the Health Funds Report’ from the Commonwealth Ombudsman revealed a whopping 26.8 per cent increase in complaints over the past year.
So, what's behind the rising tide of dissatisfaction? Let's take a deeper look at the key issues causing complaints to spike.
The Alarming Rise in Complaints
The Ombudsman's report showed a staggering 27 per cent increase in complaints about private health insurance in 2022-23. This surge can be attributed to several factors.
The Medibank Data Breach: The massive data breach at Medibank in October 2022 resulted in the theft of personal information from nearly 10 million customers, leading to a surge in complaints to the Ombudsman's office.
Cancellation Issues: A rise in cancellation complaints, particularly related to Peoplecare Health Limited (Allianz), contributed to the increase. Peoplecare, which provides health cover for overseas visitors and students, experienced a high volume of cancellation and refund requests as pandemic travel restrictions eased.
Premium Hikes Outpacing Inflation: Kate Browne, Compare Club’s Head of Research*, had this to say: ‘It’s understandable why people are dissatisfied with their health fund,’ explaining this happens ‘when premiums rise higher than inflation, but the service older Australians receive doesn’t match the price.’
She continued, ‘Everybody’s got a different perception of what good looks like, so the one question health fund members need to ask is, do you feel you’re getting value for money from your insurer? Loyalty is a two-way street. If you’re happy and are paying a fair price, great, but don’t be silent if you’re not.’
Are you happy with your health insurance? Image Credit: Shutterstock
Which insurers received the most complaints?
Looking at raw numbers, Medibank came out ‘on top’ of the complaints table, with 29.5 per cent of all complaints (27.1 per cent market share). This placed them ahead of BUPA (23.7 per cent complaints with a 24.9 market share), HCF (13.5 per cent with a 12.5 per cent market share), and NIB (10.1 per cent with a 9.6 per cent market share).
Others ranking high on the complaints list include:
Australian Unity – 4.7 per cent (2.2 per cent market share),
HBF – 3.7 per cent (7.7 per cent market share), &
Teachers Health – 2.3 per cent (2.6 per cent market share).
What does market share mean in this context? The report states that 'where an insurer’s share of complaints was higher than its market share, this indicates that members of that insurer were more likely to complain than those of other similar sized insurers.'
According to Ms Browne, the report ‘highlights just how confusing Aussies find health insurance – even those who’ve held it for decades’.
‘My advice would be if you’re not sure about anything on your policy, ask … your fund, broker or expert*. The more informed you are, the more satisfied you’ll be when you find a good policy.’
How to change insurers*
If you feel unhappy with your health insurer, know that you have options. You can try reaching out to customer service to explain exactly where you see room for improvement. If you’re still unsatisfied, don’t hesitate to switch providers* or lodge a formal complaint.
One of the easiest ways to ensure you’re getting a good deal is to use an expert comparison service*. Compare Club is one of our long-term partners* with whom we have personally compared health insurers! You can read about Maddie’s experience here*.
The team at Compare Club* will make sure you have the health cover you need while paying a price you’re comfortable with*.
You get the peace of mind that comes with working with trusted professionals who have the years of experience* needed to navigate the complicated health insurance system and keep you from any further confusion.
You won’t lose anything by comparing; it’s completely free, and you only stand to save*! After all, if you don’t like the quote you receive from Compare Club*, you don’t have to do anything.
Have you had reason to complain against your health insurer, or have you recently changed insurers? Were you satisfied with the outcome?
Disclaimer: Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
*Please note, members, that this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We do this to assist with the costs of running the SDC. Thank you!
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