Why is HCF giving back?
When it comes to healthcare, people want to know they’ll be genuinely cared for in their time of need. As Australians face ongoing challenges to their health and wellbeing, we’re keeping our promise of not profiting from the pandemic and returning an additional $66 million in claims savings as part of our continued COVID-19 support for members. This decision aligns with our commitment to put the health of our members first and is part of the $150 million we’ve provided in total financial support.

How is HCF giving back?
Due to the postponement and reduced access to some health services throughout the pandemic, we're passing on an additional $66 million in claims savings to all members by freezing premiums at current rates until 1 November 2022.

This decision aligns with our commitment to put the health of our members first and is part of the $150 million we’ve provided in total financial support.

In addition, we’ve seen the growing importance of having quick and early access to mental health support when and where you need it. That’s why we’re temporarily expanding our mental health offering to include a free HCF HealthyMinds Check-in for all members from 12 October 2021 to 31 January 2022^#. This gives members faster, easier access to qualified mental health professionals and digital support services to help you take control of your mental wellbeing.

We've also given members greater flexibility in how, when and where their care was delivered, many from the convenience and safety of their homes through our telehealth services and hospital treatments at home.

What are COVID-19 claim savings?
Since the onset of the pandemic last financial year, health insurers have been required by the industry regulator to maintain provisions to cover the cost of the anticipated suspension of elective surgeries and claims after the lifting of COVID-19 restrictions. COVID-19 claims savings are excess funds held which we’re returning to our members as part of our commitment to not profiting from the pandemic.

Why do you need a rate rise given the low level of activity in 2021?
It’s true there was less than expected hospital activity during COVID-19 lockdowns – particularly in Victoria and New South Wales. We still however saw significant levels of hospital and ancillary activity throughout the year. Over the past financial year, HCF has paid $2.8 billion in benefits for our members, covering over 630,000 hospital admissions and 10 million extras visits for popular services such as physio, dental and chiro.

We’d prefer not to raise our premiums at all and as a not-for-profit organisation we strive to maintain the lowest premiums possible. However, we do need to raise sufficient funds to cover expected claims and ensure we can continue to deliver high quality care to our members.

As we emerge from the latest lockdowns, we expect to see further fluctuations in claims as service providers get back to normal. We also expect an increased demand for inpatient mental health treatment, elective surgery due to public wait time blow-outs and people presenting to health services with more advanced diseases resulting from limited access to health checks and preventive services. We need to make sure we have sufficient funds to cover those costs when they occur.

While the health and economic impacts of the pandemic are not yet fully understood, we’ll continue to honour our commitment to return any further COVID-19 related claims savings to our members.

What was the level of premiums raised and the level of claims for 2020/21?
We saw significant levels of hospital and ancillary activity throughout the year. Over the past financial year, HCF has paid $2.8 billion in benefits for our members, covering over 630,000 hospital admissions and 10 million extras visits for popular services such as physio, dental and chiro.

In line with APRA guidance, we had set aside provisions to cover delayed claims arising from elective surgery shutdowns. The anticipated volume in claims due to the postponement of some health services has not fully eventuated, which means we're passing these saving on to all members by freezing premiums at current rates until 1 November 2022.

Why couldn’t this refund come as a discount off my next bill?

The decision to freeze premiums at current rates until 1 November 2022 was the simplest and most cost-effective way of ensuring every dollar of savings is returned to members and in line with our commitment to keep health cover affordable and available to as many Australians as possible.

Can I choose to have my return paid via cash or discounted off my next bill?

No. This option was considered although our members pay their premiums in different ways and frequencies. The decision to freeze premiums at current rates until 1 November 2022 was the simplest and most cost-effective way of ensuring every dollar of savings is returned to members and is in line with our commitment to keep health cover affordable and available to as many Australians as possible.

What else has HCF done to support members throughout COVID-19?

Since the COVID-19 pandemic began, we've put the health of our members first and have given back $150 million in financial support, including premium relief to over 71,000 members experiencing hardship to make sure they remained covered throughout the pandemic.

We made the early decision that all hospital policies would cover COVID-19 related hospital admissions, at no extra cost to members^#. And we’ve provided peace of mind and protection for those needing urgent dental and hospital treatment for conditions unrelated to COVID-19 such as childbirth, cardiology, cancer treatment, in-hospital mental health treatment and accidents.

We've also given members greater flexibility in how, when and where their care was delivered, many from the convenience and safety of their homes. This included mental health support, telehealth services and hospital treatments at home.

What if my policy is currently suspended, will I still receive the savings?

You don’t need to make payments towards your premiums while a membership is suspended which also means no benefits are payable. If you resume your HCF membership before 1 November 2022, you’ll still benefit from the premium freeze at current rates until 1 November 2022.

What if I’ve prepaid my premium beyond October 2021?

Depending on when your premium is prepaid until, you can still benefit from the freezing of premiums at current rates until 1 November 2022. You’re also able to pre-pay and lock in your current premium for up to 18 months (from the day you make the payment) and will still have the option to benefit from the premium freeze at current rates until 1 November 2022.

How will this affect my next payment?

You won’t need to do anything and your current premiums will stay the same until 1 November 2022. You can continue paying via your normal payment method.

How is the give back calculated and applied to my policy?

Members pay premiums in different ways and frequencies and the freezing of premium rates was the simplest and most cost-effective way of ensuring every dollar of savings is returned to members and in line with our commitment to keep health cover affordable and available to as many Australians as possible.