Government urged to dump 'flawed' health insurance discount plan for young people

Sydney Morning Herald

7 August 2018 - The federal government is being urged to scrap its plan to allow health insurance companies to offer discounts to young adults, with critics warning this will only increase the prevalence of low-value junk policies.

In its proposed overhaul of private health insurance last year, federal Health Minister Greg Hunt said the government would allow health funds to give discounts of up to 10 per cent on hospital cover to people aged 18 to 29 with the larger aim of improving affordability.

But consumer advocacy group Choice said this plan was "flawed", arguing it will lead to health funds luring young people into poor-value policies they don't need.

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Michael Wonder

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Michael Wonder