Drop 'junk' private health insurance policies, Choice tells Government

Consumer advocacy group Choice has identified seven popular "junk‟ private health insurance policies that it says are a waste of money for consumers and taxpayers, and is calling on the Federal Government to act.

These policies, from Medibank, NIB, HCF and others, come with restrictions and exclusions for the vast majority of treatments with little benefit above what is already provided through Medicare, according to Choice.

“Our analysis shows that in many cases, junk policies cover less than 1% of the services available in hospital, and exclude treatment for the most common serious illnesses such as cancer, stroke and heart disease,” says Choice Head of Media Tom Godfrey.

Choice recently encouraged health fund members to consider dropping their extras (mainly dental) insurance unless they are confident of receiving more in benefits than they are paying in premiums.