Aussies ditch dentist trips amid rising household bills, new Medibank data shows

Don’t like the dentist? You’re not alone. About half the Australian population skipped regular check-ups last year, and here is why it is a problem.

Australians are not putting their money where their mouth is, at least when visits to dentists are concerned, with almost half the population skipping dental appointments in the past year.

New data from the nation’s biggest health insurer, Medibank, has found that about 50 per cent of Australians aged 15 years and over did not visit their dentist in 2022. This has fuelled fears of a potential spike in claims in the years ahead as costly conditions emerge that could have been avoided via a simple check-up.

Medibank covers the full cost of a dental check-up for their members as part of their preventive healthcare measures, knowing that a regular appointment could potentially save thousands of dollars treating more complex conditions such as gum disease and severe tooth decay.

The mass avoidance of dental appointments comes despite the easing of Covid-19 restrictions and even Australia’s most lockdown state, Victoria, declaring an end to the pandemic.

Medibank medical director Jessica Choong, said people should visit a dentist twice a year for a routine check-up, saying it not only looked after teeth and gums but also broader health and wellbeing.

“It’s really important that people visit the dentist for a check-up twice a year, as good oral hygiene is one of the gateways to overall health,” Dr Choong said.

“Getting regular check-ups can prevent tooth decay and avoid costly dental procedures in the future, as well as contribute to your overall health and wellbeing.”

The data showed a gulf emerging between Australia’s east and west coast, with 48 per cent of the population in NSW and Victoria skipping dental appointments, while in Western Australia the number jumped to 55 per cent.

Medibank’s data was reflected in broader statistics, with the Australian Institute of Health and Welfare finding 49 per cent of Australians avoided the dentist and about 30 per cent reporting feeling uncomfortable about their dental appearance.

Overall, Australians paid $11.1bn on dental services in the past year, up from $9.7bn in 2019-20. AIWH found the average dental bill has increased about 2.4 per cent each year for the past decade.

As 10 consecutive interest rate hikes from the Reserve Bank and persistent inflation crunch household budgets, people have been looking to save money such as skipping expenses seen as non-essential such as routine dental appointments.

Medibank group executive Milosh Milisavljevic urges people to make the most out of their extras cover.

But Medibank group executive Milosh Milisavljevic said dental check-ups shouldn’t be a financial burden and encouraged policyholders to make the most of their extras cover.

Medibank has returned more than $1bn in pandemic savings to members via cash give backs, premium deferrals and other support, with the Australian Competition and Consumer Commission watching closely to ensure that there is no profiteering from Covid-19.

At Medibank’s latest interim earnings results, its core health insurance business revenue rose 2.2 per cent to $3.54bn versus total claims paid increasing 0.5 per cent to $2.9bn.

Meanwhile, Medibank’s deferred claims liability, which is in recognition of claims that have likely been postponed since the beginning of pandemic restrictions, fell $36.7m to $411.6m, mainly due to the impact of lapsed customers and the expiration of extras limits.

Still, Medibank remained a big contributor to the risk equalisation pool – a core part of Australia’s non-discriminatory private health insurance system, which means a person who is a smoker pays no more for a policy than someone who is. To this end, the risk equalisation system moves funds from insurers with lower than average claim costs to compensate those with higher than average claim costs.

Macquarie analysts said Medibank and fellow listed health insurer NIB were among the biggest contributors and expected health insurance participation to revert to pre-pandemic levels – in which the young and healthy withdrew policies in droves – next financial year

“Risk equalisation trends stabilised in FY22, supported by improving participation, only 30 basis points lower than the 30-year-high,” Macquarie said in a note to investors last month.

“We expect participation to revert in a post Covid-19, high inflation environment and as a result, risk equalisation trends to deteriorate again. We forecast Medibank to remain a payer into the risk equalisation pool and NIB to continue selecting better risks at a faster pace than their customers age.”

The ACCC warned late last year of higher health insurance premiums in coming years, citing labour shortages and rising wage costs across the healthcare industry.