How Community Rating keeps Private Health Insurance fair for everyone

Unlike other types of insurance, such as car or home insurance—which are risk-rated and adjust premiums based on individual risk factors—private health insurance in Australia does not discriminate against members based on their health history or likelihood of making claims. This means that a healthy 25-year-old and a 60-year-old with existing health conditions will pay the same premium for identical coverage.

The Australian Government introduced community rating to make healthcare fair and accessible. This system ensures that everyone pays the same price for private health insurance, no matter their health history or how many claims they’ve made. Without it, people with higher health risks could face very high costs or be denied coverage. Community rating keeps private health insurance affordable for all Australians.

At Union Health, we are committed to upholding the values of fairness and equality inherent in the community rating system. As a member-owned, not-for-profit health fund dedicated to serving union members and their families, we want to make sure everyone gets the same access to quality healthcare. Community rating is a key part of this, ensuring all our members receive equal care and support, no matter their situation.

In summary, community rating is a cornerstone of Australia's private health insurance framework, designed to ensure that all individuals have equal access to healthcare coverage. At Union Health, we are proud to support and embody this principle, providing fair and equitable health insurance options for all our members.