Analysis conducted by the peak body for private health insurers for The Sunday Age and The Sun-Herald found that there has been an increase in private health insurance claims for every common procedure across the country compared to pre-pandemic levels in 2019. This suggests that the pandemic has led to a boom in private hospital services, especially for common procedures such as joint replacements.
Recent data from the Australian Prudential Regulation Authority reveals that around 758,000 Australians have signed up for private health insurance since September 2020. This is a significant increase considering that prior to the pandemic, private health insurance numbers were declining, particularly among the 30-34 age group.
According to Stephen Duckett, a health economist and honorary professor at the University of Melbourne, many new private health insurance members are what he calls "hit-and-run" patients. These patients sign up for private health insurance with a pre-existing condition to have surgery after waiting out the 12-month notice period that secures them hospital cover. They then drop their insurance after their operation. This practice, known as adverse selection, can signal potential financial trouble for health insurers in the long term.
While the increase in private health insurance numbers may appear positive at first glance, it is important to consider the potential long-term impact of hit-and-run patients. As the pandemic continues, it remains to be seen whether private health insurance numbers will continue to rise, or if the trend will eventually reverse itself.
