Medibank shares take off on the back of health insurance reforms

Photo: Adam Berry/Getty Images.

Shares in Medibank Private and NIB Holdings have jumped on moves to reform health insurance to make it more attractive to younger people.

A short time ago, Medibank was up 2.1% to $3.105 and NIB 0.5% to $6.04. Medibank shares have added 5% since Tuesday

The government is attempting to arrest falling private health insurance rates among under 30s, which also help prop up the heavy demand from an aging boomer generation.

Under the changes, people aged between 19 and 29 get a 2% discount on their premium each year up to a maximum of five years (10%). The discount will last until age 40.

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