Experts have urged Australians to re-examine their health insurance policies and assess their needs after research found premiums surged by up to 17 per cent.
Australians were hit with premium increases far higher than the industry-wide price rise of 3.03 per cent in April, according to consumer group Choice.
Choice analysed more than 24,000 policies with hospital cover around the country and found the average increase was more than 10 per cent for HBF, HCF, HIF and Australian Unity’s Gold policies.
“One policy in Western Australia even had an increase of 17 per cent,” Choice health insurance expert Jodi Bird said.
“With these sky-high increases, it’s worth taking the time to review your health insurance to ensure you’re only paying for what you need, and that you’re getting it at the best possible price.”
Choice has consequently compiled its top three tips for saving on health insurance.
Drop gold hospital insurance
According to the consumer group, gold hospital cover has just become too expensive to pay for anymore.
“If you have a specific condition that’s usually only covered by gold, and you want to use the private hospital system, look for a silver plus policy, or consider self insurance,” Bird said.
Bird explained self insurance meant setting aside money for private health costs as they arise rather than paying an insurer.
For example, a private cataract surgery, which is typically covered in gold policies, would be cheaper if it was paid out-of-pocket, according to findings by Choice.
“If you don’t need any health treatment, your savings will grow,” Bird added.
“This option may only be suitable for people who have few health issues and do not anticipate any unexpected health events.”
Bird said the same cover with a different insurer could save hundreds each year.
“We suggest looking beyond the well-known big funds and consider smaller funds – we found that switching to a smaller fund often gives you a cheaper deal,” he said.
Independent health insurance comparison tools online are a way thousands of policies can be compared.
Check if you need extras insurance
Extras insurance can be worthwhile if it is used enough that it pays out more than the premiums, Bird said.
If it is needed, he added, then shop around and purchase extras from a different provider that has a better deal than your hospital cover.
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
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