Cost-of-living crisis forcing Australians to 'neglect' their healthcare needs
Private health insurance has surged to the top of Australian employees' demands as their medical concerns take the backseat in the wake of cost-of-living challenges, according to a new report.
A new survey from the Members Health Fund Alliance, as reported by news.com.au, found that 56% of Australians want employer-funded private healthcare.
This benefit rose to dethrone other in-demand benefits in Australia, such as working from home, salary, and even childcare support, according to the poll, which was carried out by Ipsos.
"Our research shows growing public support for employers to step in and help, with many Australians backing workplace health cover as a practical solution to rising medical expenses," Laura Hicks, spokeswoman of the Members Health Fund Alliance, told news.com.au.
By jurisdiction, the Northern Territory reported the highest demand for employer-covered healthcare, with 75% of employees saying they want it, according to the report.
More than half of employees in other states, such as New South Wales (59%), Victoria (57%), and Queensland (54%), were in favour of the benefit.
Surpassing work from home demand
The Members Health Fund Alliance attributed the growing demand for employer-covered healthcare insurance to cost-of-living concerns forcing employees to neglect healthcare services.
Seven in 10 Australians between the ages of 18 and 34 said they have delayed routine health appointments by two years.
"The reality is that everyday living expenses are forcing many people to neglect their healthcare needs by putting off important healthcare checkups. And that's not in the national interest," Hicks said.
However, the report found that three in four employees would have likely accessed key healthcare services if they had private health insurance that shouldered its costs.
"This particularly rings true with younger Australians, who told us they were more likely to prioritise their health if they had insurance that covered all or at least a proportion of the cost," Hicks said.
But the growing pressure on employers to cover healthcare also comes amid rising medical plan costs, according to Aon's 2026 Global Medical Trend Rates Report.
It revealed that the estimated annual medical trend rates in Australia will rise to 5.2% in 2026, up from 5.1% a year ago.
Alan Oates, head of global benefits for APAC at Aon, previously urged employers to "be ready to deploy strategies that will deliver value."
"Larger employers should analyse their own medical trend which may be falling faster than market averages," Oates previously said.
"Now is the time to use local tendering exercises that will drive market competition as underwriters return to profitability at different rates and continue to invest in preventive wellbeing strategies for sustainable cost management. By leveraging data available externally and internally and partnering with insurers, businesses can better anticipate risks and support a healthier, more productive workforce."
