What You Need to Know About Private Health Insurance Now!
At times we collaborate with others to get you expert information. This post is a paid post from Sophie Ryan, an iSelect spokesperson outlining why you need to review your private health insurance before November 1, 2022.
We know it’s stating the obvious, but costs have risen across the board this year. Interest rates, groceries, petrol… and that’s just to name a few! If the thought ‘will these price hikes ever end?’ has crossed your mind more than once in the last few months, you’re certainly not alone.
Increased financial pressure is hurting many household budgets, and now Aussies with private health insurance who escaped a premium increase earlier this year could soon be in for a rude shock.
Don’t despair though! If you review your policy and pay your annual premium before November 1st, you could save on your private health insurance. Read on as we share more tips that could put some of that hard-earned cash back into your pocket and further explain the importance of reviewing your policy before November arrives.
Why is November 1st Important?
Usually, health insurers increase policy premiums in April, but many delayed their annual rises in 2022 due to the ongoing impact of COVID-19.
While some health funds increased prices as recently as October 1st, most of Australia’s biggest insurers will put their rates up from November 1st by an average of between 2.66 per cent and 3.18 per cent.
So, for the millions of us Aussies covered by the country’s four largest health funds, the temporary financial relief is almost over. Customers of Medibank/ahm, Bupa, nib and HCF (which combined have over 70 per cent market share), we’re looking at you!
You Could Save Money by Reviewing Your Policy
If you’re thinking the size of these premium increases doesn’t sound like too much. Remember, every single dollar adds up, especially at a time when so many households are already doing it tough financially.
If your health insurance premium has already gone up or is about to, now could be a great time to cross the simple task of reviewing your policy off your to-do list.
During your review, one way you could save money is by thinking about whether you’d be willing to pay a higher excess or co-payment. Generally, if you go for a higher excess on eligible policies, you’ll get lower overall premiums in exchange. It’s certainly something to consider if you think it’s unlikely you’ll be admitted to hospital in the near future.
It’s also important to note that some funds may offer incentives at certain times of the year. Now could be a good time to shop around and take advantage of any deals. Remember though, a good deal doesn’t necessarily mean the cheapest. Make sure the policy is suited to your needs, which brings us to our next point.
Savings are Great, but Consider Whether your Policy Suits your Needs too
If this is the first time you’re reviewing your policy in more than a year (or perhaps you can’t even remember the last time you thought about it!), it may no longer be a suitable option for your personal circumstances.
You could be paying unnecessarily for things you no longer need or not be covered for things you do. It could be worth asking yourself if you even need to pay for Extras cover.
You could find a cheaper deal if you go for Hospital cover only. If you do use some Extras, such as dental, you could consider flexible health insurance products that combine your separate Extras limits into a single annual limit for you to use across different services.
We know that having private health insurance can give you peace of mind knowing that in the unfortunate event of a serious health issue that’s covered by your policy, you will have private care.
So, if you’re one of the millions of Aussies whose health insurance premiums are going up from November 1, now is a great time to review your policy, make sure it still suits your needs and look for ways you could save money.
A comparison service like iSelect can help you do this by comparing your current policy against other options from their range of policies and providers to help you try to find an alternative better suited to your needs and budget. *
And if you do decide to switch policies and/or providers, they’ll help you take care of the entire process. Easy done!
iSelect Health Disclaimer
* iSelect does not compare all health insurance providers or policies in the market. The availability of policies will change from time to time. Not all policies available from its providers are compared by iSelect and due to commercial arrangements, your stated needs and circumstances, not all policies compared by iSelect will be available to all customers. Some policies and special offers are available only from iSelect’s contact centre or website. To view iSelect range of providers, visit: www.iselect.com.au/partners