'Carrot and stick' plan to get the young covered
Published 26/12/2013 | 02:30
COMMUNITY rating has protected older people from having to pay higher private health insurance premiums.
Although older people are more likely to make a claim, it means the level of risk a consumer poses to an insurer does not directly affect the premium.
Younger people end up compensating by paying a higher rate than their expected level of claims would necessitate, given their generally healthier wellbeing. Older people typically pay premiums lower than the risk associated with their cover would require.