Fifteen per cent of Australians with private health insurance have dropped or reduced their cover during the pandemic, according to the latest Taking the Pulse of the Nation survey, exacerbating downward trends in membership among young people.
Fifteen per cent of Australians with private health insurance have dropped or reduced their cover during the pandemic, according to the latest Taking the Pulse of the Nation survey, exacerbating downward trends in membership among young people.
A Research Insight based on the survey found that younger Australians, those experiencing financial stress, and people who have lost jobs due to COVID-19 are all more likely to have dropped health insurance.
Nearly a third of Australians aged 35-44 reduced or dropped their insurance, and a quarter of those aged 25-34.
People experiencing financial stress are three times more likely to reduce their cover than those who are making ends meet. Eighteen per cent of people who became unemployed due to COVID-19 downgraded their insurance, compared to 3.3 per cent who became unemployed for other reasons.
Professor Yuting Zhang, author of the research, said the pandemic had highlighted problems the sector is facing.
“The Australian private health insurance sector is in trouble, with young people abandoning memberships. Remaining members tend to be older and more likely to use health care. The pandemic has exacerbated these trends,” Professor Zhang said.
“Young people get less value out of their private health insurance than older people. The government should revise incentives for young people to take up private health insurance to ensure that premiums are more closely aligned with the benefits members expect to receive.”
Led by the Melbourne Institute: Applied Economic & Social Research at the University of Melbourne, the fortnightly Taking the Pulse of the Nation survey tracks changes in the economic and social wellbeing of Australians. The 21st wave of the survey was conducted from 19-23 October.
The latest survey found that, over the seven months of the pandemic, on average a quarter of Australians have had trouble paying for essential goods and services, and a fifth have experienced mental distress most of the time.
Professor Guay Lim, lead author of the survey report, said despite differences in restrictions, all areas are facing economic uncertainty.
“Despite differences in restrictions across the states, the proportion of people in Victoria under financial stress was 31 per cent, which is not significantly different from the proportions in QLD (29 per cent) and WA (29 per cent). It appears that people in the two states most dependent on resources and tourism remain more financially vulnerable,” Professor Lim said.