As April Fool’s Day approaches, there’s one change coming that’s no joke for millions of Australians. The start of April will see a rise in health insurance premiums, affecting approximately 15 million individuals across the nation who rely on private health care coverage. With an average increase of 3.73 per cent approved by the government, this marks the steepest climb in health insurance costs since 2018. It’s a tough pill to swallow, especially as Australians are already grappling with soaring grocery bills, skyrocketing energy rates, and escalating insurance premiums across the board.
However, it’s crucial to understand that the impact of this increase is not uniform. It varies widely between different health funds and individual policies, with some popular funds raising their rates well above the industry average, with the highest average increase reaching a staggering 9.56 per cent. This has left many customers reeling, as they’ve been informed that staying with their current policy could mean shelling out hundreds more in premiums each year.
But there’s no need to wave the white flag just yet. It’s not too late to take a closer look at your policy, assess its features, and consider trimming the fat from any extras you may not need. To help you navigate these choppy waters, David Koch, Compare the Market’s Economic Director, has shared some savvy health insurance-saving strategies that could ease the burden on your wallet.
Prepay and save
Some health funds offer the option to pay for your policy up to a year in advance. By doing so before the April 1 price hike, you can effectively dodge this year’s increase. While it may not be feasible for everyone to pay a lump sum for a year’s worth of premiums, those who can manage it could save a significant amount over the next 12 months.
Shop around
Loyalty doesn’t always pay off when it comes to health insurance. If you’ve been with the same fund for years, you might be missing out on competitive offers and incentives that are available to new customers. A quick comparison could reveal similar coverage at a lower cost.
Increase your excess
Opting for a higher excess can reduce your regular premium, provided you’re comfortable with paying more upfront if you need to make a hospital claim. This strategy is particularly effective if you’re in good health, have no planned hospital visits, and have an emergency fund to cover the higher excess if necessary.
Maximise perks and incentives
Health insurers are rolling out attractive perks and incentives to attract new customers. These can include free membership periods, waived waiting periods, and other bonuses. If you find a cheaper policy, these sweeteners can make the deal even more appealing.
Downgrade your cover
Not all high-level policies are necessary for everyone. If you don’t require coverage for services like pregnancy, sleep studies, or weight loss surgery, a lower level of cover, such as a silver plus policy, could be more cost-effective while still providing comprehensive protection.
Review your extras
Take a moment to evaluate your extras coverage. If you’re paying for services you no longer use, such as optical benefits, you might save money by removing them from your policy. Remember, you can always upgrade your coverage if your needs change in the future.
Switching made simple
If you’re considering switching to a new provider, rest assured that it’s easier than it seems. Moving to the same or lower level of cover with a new insurer won’t subject you to new waiting periods. Plus, having a pre-existing condition won’t affect your risk rating with another provider.
As we brace for the upcoming health insurance price surge, it’s essential to be proactive. Review your policy, compare your options, and make informed decisions to ensure you’re getting the best value for your money.
What are your thoughts on the upcoming changes? Have you explored any cost-saving strategies for your health insurance? Feel free to share your insights and experiences in the comments below.
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered financial advice. Every financial situation is unique, and readers are encouraged to conduct their own research and consult with a qualified financial professional before making any financial decisions or taking action based on the content of this article.
Also read: Health insurance premiums soar, forcing Australians into tough choices
I won’t be changing my provider, as when 1st July comes around, any limits that haven’t been used in the past 12 months will ‘roll over’ to the next year (to a maximum of 12 months limits) – I’m happy with that. I’ll be paying an extra 30 cents per fortnight. I have extras cover only. I can’t afford hospital cover, not on the single age pension!