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As part of a $5.7 billion budget for mental health in 2020-21, the government has doubled its commitment to Medicare funded psychological services from 10 to 20 consultations.
With the increasing mental health challenges, facing many Australians, Mercer welcomes the increase in the mental health budget and the initiative to double the amount of co-funded psychological consultations.
Implication for employers
This provides additional resources to employees that can supplement any employer funded EAP programs.
Implication for individuals
This provides employees with additional government funding to assist with their ongoing psychological treatment.
The government has addressed the decreasing number of young Australians not having or dropping out of private health insurance by allowing Insurers to increase the age of dependents – from 24 to 31 – to encourage continuity of cover, and will also allow people with a disability to remain on their family policy.
We encourage any initiative that will ease the financial burden on young Australians to maintain Private Health Insurance.
Implication for employers
This could see a number of employer funded health plan members have their premiums decreased and or see the removal of an employee contribution.
Implication for individuals
This will allow parents to continue to support their older, less financially dependent children with Private Health Insurance until the age of 31.
The government will commit $17.1 million to enhance transparency of out-of-pocket costs for Australians with private health insurance via the Medical Cost Finder website. This site collects, validates and publishes individual non-GP medical specialist fees for consumers.
Any strategy that can eliminate the confusion or mystery of out-of-pocket expenses for private health insurance members is a very welcome initiative.
Implication for employers
The ability to eliminate or reduce out of pocket expenses will increase the already high employee benefit of a company private health plan.
Implication for individuals
Providing individuals with a clear understanding on how to minimise or reduce these out of pocket costs will increase the value proposition of private health insurance.
The government has extended the funding of telehealth services for an additional six months from 30 September 2020.
This initiative will see individuals without easy physical access to doctors and allied health services able to continue with online consultations.
Implication for employers
Anything that improves employee access to specialists can only improve the ongoing health of the community and workforce.
Implication for individuals
Individuals unable to physically visit a specialist or allied health specialist, either due to incapacity or distance, will be able to have these consultations in the home and have them co-funded by Medicare.
This content is intended to inform clients of Mercer’s views on particular issues. It is not intended to be provided to any person as a retail client and should not be relied upon or used as a substitute for professional advice specific to a client’s individual circumstances. Whilst Mercer believes the prospective information and forward looking statements made by Mercer in this report are based on reasonable grounds, they are predictive in character and may therefore be affected by inaccurate assumptions or by known or unknown risks and uncertainties. This content has been prepared by Mercer Consulting (Australia) Pty Ltd (MCAPL) ABN 55 153 168 140, Australian Financial Services Licence #411770. Any advice contained in this content is of a general nature only and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this content you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering and seek advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take. ‘MERCER’ is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
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