POOR VALUE: Some health insurance policies fail to cover patients for major surgery.
POOR VALUE: Some health insurance policies fail to cover patients for major surgery. Sergey Guneevap

Consumer group calls for rethink on 'junk' health policies

A KEY consumer group is calling on the Federal Government to reconsider the eligibility of what it calls popular "junk" private health insurance policies.

Choice said seven of those policies - from Medibank, NIB, HCF and others - were a waste of consumer and taxpayer money.

The policies provide exemption from certain federal levies, but the patient ends up in the public hospital system because the policy covers almost nothing.

Choice wants the government to review the eligibility of the junk policies for the Private Health Insurance Rebate and exemption from the Medicare Levy Surcharge and the Lifetime Health Cover Surcharge.

The analysis shows many junk policies cover less than 1% of hospital services and exclude cancer, stroke and heart disease treatment.


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