Health insurance is supposed to be our safety net, but it often feels like a frustrating web of confusion, bureaucracy, and wasted potential. or signup to continue reading Many of the 14.7 million Australians with private health insurance cover will be blissfully unaware of how much of their health insurance money is left unspent in their annual health plans.
This lack of awareness and monitoring around health insurance means many benefits go unused, and unclaimed funds remain with the insurance companies. It's a lot of lost money. What consumers may not realise is they are contributing to a system where their funds are not maximised for their benefit but instead bolster the financial gains of insurers.
By grouping a range of extras that may not be used or needed, insurance companies create this facade of extensive coverage while driving up costs and falsifying the actual value of the policy. There are so many options that don't match people's specific needs. Imagine paying for a policy that doesn't cater to your actual health issues or lifestyle? The alternative is a data-driven approach that addresses the underlying causes of a person's health issues by taking into account their health status, lifestyle and personal goals, ultimately leading to better outcomes.
For instance, if data shows that someone frequently uses physiotherapy or speech therapy, the plan automatically adjusts to offer more of these services. Data-driven personalised insurance isn't about ticking boxes or post codes, it's about making insurance work for the policy holder. This is where value-based health insurance is a game-changer.
Personalised health insurance represents the future by leveraging data and technology not to track how much people spend or don't spend, but to assess how effectively a person is progressing and achieving their health goals. By focusing on the quality of care rather than the volume of services, a data-driven model personalises health and tailors it to individual needs to achieve better outcomes. If insurers were genuine about delivering quality health plans, they would be more diligent about gathering detailed information about a person's medical history, current health conditions, lifestyle factors and personal preferences and curating a customised plan.
It would also put a stop to policy holders paying for coverage that they never use and don't need. A major gripe with health insurance is the range of extras offered are often irrelevant to a person's needs. The one-size-fits-all approach makes it harder for consumers to track what they actually need versus what they're paying for.
The gaps between what's covered and out-of-pocket expenses can also result in unexpected costs, further obscuring the actual value of a policy. It undermines the perceived value of the policy and the disconnect results in a substantial financial rort, where people are spending money on health insurance that offers limited value to them. DAILY Today's top stories curated by our news team.
WEEKLY The latest news, results & expert analysis. WEEKLY Get the editor's insights: what's happening & why it matters. WEEKLY Love footy? We've got all the action covered.
WEEKLY Every Sunday explore destinations, deals, tips & travel writing to transport you around Australia and the globe. WEEKLY Going out or staying in? Find out what's on. WEEKDAYS Sharp.
Close to the ground. Digging deep. Your weekday morning newsletter on national affairs, politics and more.
TWICE WEEKLY Your essential national news digest: all the big issues on Wednesday and great reading every Saturday. WEEKLY Get news, reviews and expert insights every Thursday from CarExpert, ACM's exclusive motoring partner. TWICE WEEKLY Get real, Australia! Let the ACM network's editors and journalists bring you news and views from all over.
AS IT HAPPENS Be the first to know when news breaks. DAILY Your digital replica of Today's Paper. Ready to read from 5am! DAILY Test your skills with interactive crosswords, sudoku & trivia.
Fresh daily! Advertisement Advertisement.
