HMS, HAG 2024 HSC 11 MC

Why do private health insurance providers apply waiting periods for certain procedures and services?

To ensure the policy is suitable for the policyholder
To assess the policyholder's capacity to pay premiums
To maximise eligibility of government rebates for consumers
To prevent immediate claims for pre-existing medical conditions

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\(D\)

Show Worked Solution

D is correct: Waiting periods implemented primarily to prevent people from joining only when they need treatment for pre-existing conditions.

Other Options:

A is incorrect: Suitability is determined by policy features, not waiting periods.
B is incorrect: This is determined during application, not waiting periods.
C is incorrect: Rebates aren’t affected by waiting periods.

♦♦ Mean mark 40%.