Parents' health insurance now covers children until 31-years-old as more young people face the risk of unemployment due to the COVID-19 pandemic.
The Federal Government has extended the age limit for family health cover from 24 to 31 to help the country's health funds and help young people amid the unstable COVID-19 economy.
Catholic Health Australia policy director James Kemp said raising the age that young people can stay under their parents' health insurance “could not have come at a better time.”
“The last year has been incredibly tough for young Australians. Unemployment rates have rocketed amongst the under 30s, and many are facing an uncertain future,” Kemp said, as reported by The Sydney Morning Herald.
“This important change will provide peace of mind and allow far more young Australians to remain on their family insurance policy and therefore be able to access private health care when they need it.”
Even before the pandemic, many young people were dealing with high rents, flat wage growth, and the prospect of saving for many years to buy a home – forcing them to ditch other expenses such as health insurance. As a result, Australia's private health insurance system focused on providing young people with coverage, says Kemp.
Ben Harris, the director of policy and research at Private Healthcare Australia, said private health funds recognised an increasing number of young people depending on their parents throughout their 20s.
“An arbitrary age cut-off at 24 risks leaving some people without private health cover options.
This policy is more important than ever before as public hospitals are under pressure due to the pandemic, with elective surgery waiting lists exceeding 1.5 years for common procedures,” Harris said, as reported by The Sydney Morning Herald.
