Ed Close, Managing Director and CEO of nib, highlighted that the surge in medical expenses, particularly in hospital services, wages, and medical supplies, has necessitated this premium increase. Additionally, recent contract renewals with Australia's private hospital sector have contributed to the adjustment, ensuring continued access to services and minimising out-of-pocket expenses for members.
nib has been proactive in enhancing member benefits, introducing the 'Known Gap' initiative in October 2024. This program offers eligible members capped out-of-pocket expenses when treated by participating specialists. Furthermore, the expansion of 'No Gap' services allows members to access certain dental procedures without additional costs at over 200 participating dental centres nationwide.
Members in New South Wales should note that the premium increase also accounts for the NSW Government's higher charges for private rooms in public hospitals, effective from 1 January 2025. This change is projected to cost nib over $20 million annually.
In the fiscal year 2024, nib funded $1.88 billion in claims for Australian members, averaging approximately $5.1 million in claims per day. The upcoming premium adjustment aims to balance the rising healthcare costs while delivering value to members and supporting the sustainability of the private healthcare sector.
For health care professionals, understanding these changes is crucial. The increase in premiums underscores the importance of comprehensive insurance coverage that aligns with evolving healthcare expenses. Professionals should assess their current policies to ensure they provide adequate protection against potential liabilities and consider consulting with insurance advisors to explore options that balance cost-effectiveness with comprehensive coverage.
