Last-minute rush to save on health insurance premiums

THE countdown is on for Australians to review their health insurance premiums before price rises strike on April 1.

HEALTH insurance members have just six days left to decide if they want to switch or ditch their cover before the next premium hike hits.

Here’s some last-minute tips to securing yourself the right policy for the right price.

CHECK YOUR COVER

Financial comparison website iSelect’s spokeswoman Natalie Pennisi is urging Australians to take immediate action “to avoid having to pay more for health insurance.”

iSelect spokeswoman Natalie Pennisi is urging consumers to take action on their health insurance policies before April 1.

“Save yourself the extra fees and get more out of your cover by switching to a different provider before April 1,’’ she said.

Work out your inclusions and exclusions and then determine what you need to be covered for in the next 12 months.

For example, obstetrics cover is expensive so if your baby-making days are over then give this the flick.

INSURANCE: More Australians are going without private health cover

EXTRAS

This cover can sometimes be a waste of money so ask your insurer for a copy of all your extras claims during the past 12 months and the cost of having extras cover.

Then do the maths.

If your money back on extras claims doesn’t exceed the cost of having excess cover then it’s probably time to drop this cover.

HUNT FOR NEW POLICIES

Be aware when using financial comparison websites because they don’t include every insurer and policy on the market.

Make sure you check your policy and understand the inclusions and exclusions.

To get a full snapshot of all providers and policies use the privatehealth.gov.au to compare.

As to how frequently you should do this, NIB’s group executive Rhod McKensey said customers should do it “every two years.”

Mother-of-two Sarah Dunn, 32, said she is on the lookout for a new insurer after being with the same provider most of her life.

Sarah Dunn, 32, and husband Matt, 37, together with children Ashton, 1 and Charlotte, 4 are looking to switch their private health insurance cover.

“We thought we were covered for obstetrics with our second child and we weren’t which was disappointing,’’ she said.

“We’re on a tight budget so we have to find the best value for us.”

HEALTH: Last-minute attempt to beat the premium price rise

AVOID THE PRICE HIKE

Premiums are set to jump by an average of 3.95 per cent on April 1 — the lowest level since 2001.

Research by consumer group Choice shows the latest hikes will lift the average cost a single person an extra $90 per year and families about $158 with top hospital cover.

Mr Kensey said if possible “customers can prepay their premiums for up to 13 months to rate protect their current premium price.”

All payments must be processed by March 31 for this to occur.

New analysis by financial comparison site Finder.com.au revealed only one in five Australians will pre-pay their cover before the April price rise.

INCENTIVES

Insurers are using plenty of bait to entice new business so if you sign up before the end of the month chances are you’ll get a little sweetener for doing so.

From a short period of free cover, gift vouchers, movie tickets, Flybuys points or even free Lycra, insurers are doing anything to snare new customers.

Some insurers also offer corporate discounts, so check with your employer.

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@sophieelsworth

Originally published as Last-minute rush to save on health insurance premiums