healthslips has partnered with ItsMy Group Pty Ltd (ItsMy Group) for the provision of health insurance products. By proceeding, you agree that ItsMy Group will use your personal information to provide advice on health insurance products and assist with arranging cover, and that ItsMy Group and healthslips will collect, store and use your information in accordance with the ItsMy Group Privacy Policy and the healthslips.com.au Privacy Policy. Not all policies can be discussed or purchased over the phone. If ItsMy Group cannot assist with your preferred policy, they will tell you and offer to discuss alternatives or provide you with contact details for your preferred policy.
A ‘health tax’ passed by NSW government last week means NSW residents could face higher premiums for health insurance in 2025.
The new legislation means the state government can increase its existing tax on private health insurance if insurers do not agree to pay a higher ‘bed rate’ of $892 for private patients in public hospitals. HCF has now agreed to pay the NSW government’s full bed rates, but may pass on those costs to members through higher premiums.
While nib has agreed to pay a higher bed rate, it has not said how much. The other two big insurers – Bupa and Medibank – have not agreed. Many smaller funds, including Teachers Health, already pay the full bed rate.
NSW is the only state that charges this additional private health insurance tax.
Private Healthcare Australia, the peak body for the health insurance industry, predicts that if insurers decide to pass on the increased cost to their customers, NSW individuals with health insurance will pay an extra $76 per year and families an extra $156 a year from January 1, 2025 – the equivalent of a 4% premium rise.
“This tax will be unfairly applied at the same rate for everybody, regardless of income and level of health insurance. So, if you’re paying for Bronze health cover, you will pay the same tax as someone paying for Gold cover,” said Dr Rachel David, CEO of Private Healthcare Australia.
“It will make NSW the most expensive state in Australia to hold health insurance and cause more than 75,000 people to drop their insurance next year. This will increase pressure on public hospitals, which are already at breaking point. NSW already has the longest waiting times for surgery in Australia.”
Trudie McConnochie
Writer and Researcher
Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.
Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.
Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.
