Private health insurance was in a financial death spiral as the sector struggled to attract younger Australians. The pandemic has changed that.
Young Australians have emerged from COVID lockdowns with a fresh perspective on their health – especially mental health – and it is putting them at the forefront of a revolution sweeping through the sector.
One or two of Cullen’s friends started seeking help through the medical system, then “it kind of became a bit of a domino effect”, she says. It is not just the acute end of the mental health market, or health generally, that is experiencing this domino effect.Major private health insurers are reporting strong demand for apps they have released to help deal with health issues. This includes apps for issues such as anxiety and problems with sleep.
‘The time is much closer than we’ve realised, in which, if I’m not feeling well, I’ll have an e-triage device...’It is called the consumerisation of healthcare, and Australia’s private health insurers are crediting it with the sudden growth in young customers post-COVID despite the grinding cost-of-living pressures.
“Health is one of the last remaining industries to really be shaped around the needs of the consumer. I think since COVID, though, there’s been a significant increase in interest in individuals’ health and wellbeing.” This ranges from friends going for walks in the Dandenongs, to being mindful of not showing up to a party while unwell, and even proactively checking up on each other’s mental health.
Private health insurer HCF has noticed the trend. In two recent studies it commissioned with young, non-members looking at what they regarded as priority services, mental health came in ahead of traditional favourites such as physio, natural and chiropractic therapies. “We don’t celebrate the fact that you may wait three years for a joint replacement in the public system, but it’s clearly driving the level of increased participation in private health insurance,” NIB’s Fitzgibbon says.He points to investment in prevention measures – about 700,000 Medibank customers have signed up for its Live Better program – as well as the delivery of healthcare to places where customers want it, such as in their own home rather than via a hospital bed.