Young Australians who sign up to private health cover will benefit from discounts on their premium under sweeping Turnbull government reforms designed to entice more young people into the system and slow the rising cost of health insurance.
Premium discounts will accrue by 2 percent for every year until a person turns 30, up to a maximum discount of 10 per cent.
Health minister Greg Hunt said the discount scheme would be a “real incentive for young people to come into the system”, speaking on the ABC ahead of the Friday announcement.
The changes will also cut off government rebates for a range of homeopathic and so-called "natural" therapies, including reiki, reflexology, yoga and Pilates. Aromatherapy, herbalism, kinesiology, shiatsu and tai chi are also reportedly on the list.
Private insurers can still cover these items but they will no longer be eligible for Commonwealth subsidies.
Mr Hunt said the crackdown on natural therapies was the “right move” and was based on advice from the Chief Medical Officer.
The government also said it had “struck an agreement” with the manufacturers of pacemakers and prosthetic hips and knees to reduce prices.
The government estimates it will reduce the amount of money private insurers spend on the devices by $1 billion over four years, and has promised to make sure the savings are passed on to consumers.
In exchange, Mr Hunt said the government would help manufacturers by “bring[ing] more devices on earlier”.
Private health insurance premiums have been steadily rising by around 5.6 percent every year from 2010.
Mr Hunt said the package of reforms would bring prices down, but would not commit to a fixed percentage.
“I won’t put a figure on it today,” he said.
“We want to get the absolute lowest outcome.”
