What are the changes to my policy from 1 July 2024?

We have listed the changes on a separate webpage. Click here to view the summary of changes.

What is my new premium for my 2024-2025 policy?

You can see your total annual premium on your confirmation certificate under the Health Plan Portal. Your instalment plan in the portal details each fortnightly deduction. At the time of renewal, this will display your current policy premiums and future premiums beginning July 1, 2024. 

If you are yet to create a login for the website, click the login tab and follow the instructions.

Our latest rates can be found here.

When do premiums take effect?

Your current and future policies will roll over during the payment run on June 18, 2024.

We will be collecting instalment 26 of your 2023-24 contract as well as instalment 1 of your 2024-25 contract in the deduction occurring June 18, 2024. Instalment 26 is for the final 12 days of cover at the expiring rates, and instalment 1 is the first 2 days of cover at the new rate.

How are increases calculated?

The premiums reflect the actual cost of providing healthcare cover to people in each demographic. We are a member-based organisation, we do not pay dividends and our expenses are very low by industry standards.

Why do premiums need to go up, especially when Police pay rises are
currently uncertain?

With inflation of claim costs and a low return on investments, premiums have
been adjusted to reflect the actual costs of providing healthcare to each age bracket. In 2024, this is a 20% increase across the board. We are very aware of the inflationary pressures that members are facing and that these have formed a key part of the Police Association’s pay negotiation arguments.

Why is there such a large increase this year?

The 2023/24 financial year has been an incredibly difficult year for PHP. Inflationary pressures from rising medical costs and the number of claims we received significantly exceeded forecasts.

To date, we have funded these extra costs from our reserves. PHP is forecast to make a full-year loss of almost $10 million. This is not sustainable in the long term.

Our solvency and financial stability remain well above regulatory minimums and our financial strength rating from A M Best remains A- (Excellent). While we have the financial strength and flexibility to absorb one-off years like these, it is not a sustainable long-term strategy. We now need to increase premiums.

How much is the cost of the new Health Plan Portal contributing to this premium increase?

Really not that much. The main driver of the increase has been the rise in the number of surgical claims. PHP pays meticulous attention to its expenses, and this extends to our new policy administration system. The capital costs of the system will be amortised over the life of the system, and we expect to make significant efficiency gains from the new streamlined processes.

I have never made a claim. Why are my premiums increasing?

Insurance is about cost sharing. If you have never made a claim, that means
you have been fortunate to enjoy good health and your premiums have paid for the claims of your peers who have not been as lucky. If you have a health condition in the future, and need to make a claim, that will also be paid for out of everyone’s premiums. If you have Plus or Basic cover and have never made a claim, check your entitlements as you may be able to lodge some claims.

Why not just increase premiums for new members?

Costs and the number of claims has increased for everyone, and we need to collect enough premiums to pay everyone’s claims.

Will you be putting my premium up again?

If we can avoid it, we do not increase premiums. However, premium income must cover claims expenses. If claim costs rise, we must review premiums. Our focus is on providing a cost-effective solution for members and we normally review premiums annually.

Someone else pays for my premiums. Why did I get a letter?

For privacy reasons, we have sent the renewal letter to the primary member, i.e. the policy owner. If someone else is paying all or part of your premium, it is your responsibility to advise them of the premium changes.

What if I cannot afford it any longer?

Please review your plan type and excess level. Reducing your cover will reduce your premium, bearing in mind that you would then need to cover a greater percentage of your medical treatment yourself. Don’t forget our $5000 Surgical excess option (meaning you pay the first $5000 of any procedure) which significantly discounts premiums. Our rates start from as low as $6.04 per fortnight ($157.37 annually) on the Surgical plan.

What do excess options mean?

You keep your current plan cover, but the premiums will be cheaper if you select a voluntary excess, which means you agree to pay the first $500, $1000 or $5000 on every surgical claim. The excess is deducted from the total paid for each surgical claim.

If I choose to take an excess option, when is it applied?

The excess applies from the date the related lower premium is paid.

Are we planning a higher excess option for a cheaper premium?

Not at this stage. A $5000 excess already effectively excludes many smaller procedures from the plan. Historically, we have not had many members take this option up. If we get demand from our members for a higher excess as an option, then we would consider it.

How do I change to an excess option?

To downgrade your plan, you can email [email protected] or we can take your request over the phone.

If I choose to have an excess now, can I elect a lower or no-excess option later?

Yes. You will need to complete a policy amendment form. Note that there is a standdown period and we may include additional conditions or exclusions to your policy.

I am retired and want to stay in the Welfare Fund. Do I have to stay with PHP?

If you are over 65 and retired, you may be eligible for an exemption. Contact us to find out. Retired membership options can be viewed on our website.