Five questions you must ask your health insurer to get good cover

Health insurance members have just two weeks until their premiums increase and are being warned to take action to ensure they do not get ripped off.

Health insurance members have just two weeks until their premiums increase and are being warned to take action to ensure they do not get ripped off.

Consumers are fed up with soaring premium prices and confusing policies which has resulted in the industry undergoing its biggest overhaul in decades to help simplify cover.

But new analysis from health insurance comparison website comparethemarket.com.au found on silver plus hospital and extras cover — a mid-level of cover — the difference in similar policies by different insurers could be huge.

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For singles the price difference could be as much as $1100 and for families $2400.

Policies are set to rise by an average of 3.25 per cent on April 1 but Medibank’s chief customer officer David Koczkar said members should review their cover regardless.

“Ask your insurer what they are offering above and beyond the standard hospital and extras cover,” he said.

“Customers tell us they want greater value and choice from their health insurance.”

Deciphering health insurance can be difficult and time consuming.

Some of the biggest changes that are underway include the reclassification of hospital products into gold, silver, bronze and basic cover.

There is also additional services within these tiers which are called “plus” products.

Comparethemarket.com.au’s spokeswoman Jenny Williams said members “should make sure when they take out health cover they only paying for what they need”.

“A lot of people tend to go from year to year and just renew their cover,” she said.

“For example are you still paying for obstetrics and IVF but you are at the stage where you no longer want to have children.”

Some funds are also rolling out the option for members to choose higher hospital cover excesses in exchange for cheaper premium costs.

This includes having the excess increase from $500 to $750 for singles and $1000 to $1500 for families.

Bupa’s head of customer value Tim Strahan said health insurance could be a “set and forget” type purchase and encouraged Australians to talk to their insurer to check what they are paying for.

“The introduction of gold, silver, bronze and basic classification on the surface makes it easier to compare like for like, however people still need to check the specifics as to what is actually included,” he said.

Five questions to ask your insurer

1. Does my cover suit my needs?

2. Can I choose a higher excess to reduce my premium?

3. Do you offer any discounts?

4. How can I get more out of my extras?

5. What additional services do you offer so I can get value from my cover?

@sophieelsworth

Originally published as Five questions you must ask your health insurer to get good cover