How one in 10 people are avoiding the April 1 health funds premium rises
ONE in ten people are paying their full 12 month health fund premium upfront to avoid the April 1 premium rise — about $200 a year for families.
Costs
Don't miss out on the headlines from Costs. Followed categories will be added to My News.
EXCLUSIVE
ONE in ten people are paying their full 12 month health fund premium upfront to avoid the April 1 premium rise.
The move locks in this year’s lower premiums and is one way to avoid the latest $200 premium hike that is three times the inflation rate.
Health fund members who want to take advantage of the trick must pay upfront before Friday — April 1 — to lock in the lower rate.
Another one in five people making decisions about health cover ahead of the premium rise are refusing to pay for extras cover for dental and physiotherapy to save money.
Removing extras insurance could save a family up to $1,500 a year.
HALF A MILLION QUIT HEALTH FUNDS OVER APRIL 1 PREMIUM RISES
HEALTH FUND PREMIUMS TO RISE BY AN AVERAGE 5.59 PER CENT
THE BEST AND WORST OF HEALTH FUNDS
WORST HEALTH INSURANCE ‘JUNK’ POLICIES
Health fund broker Compare the Market has analysed the decisions of people approaching their business for help in the lead up to the premium rise.
Compare the Market spokeswoman Abigail Koch says singles are the most likely to pay upfront to avoid the premium rise.
Forty per cent of policies purchased since the rate hike was announced were bought by people aged between 50 and 70 years old, she says.
The number of people paying for the full 12 months of their health insurance policy upfront has dropped when compared to last year when one in six policies bought through Compare the Market were paid for in one annual payment.
FIVE WAYS TO BEAT THE INSURANCE RISE
ANNUAL premiums are rising an average $100 for a single and $200 for family, but it’s possible to save more than that through some smart strategies.
1. Tailor your cover. If you’re past having children and still paying for obstetrics, you are probably wasting money. If you’re in your 20s and paying for hip replacements, it’s a similar story. Check your cover, and remove what’s unnecessary to save money.
2. Increase your excess. Typically you pay a $250 excess on hospital claims, but some funds will lower your annual premium if you are willing to increase it to $500.
3. Shop around. There are several consumer comparison websites, plus the Commonwealth Ombudsman’s privatehealth.gov.au. You may be surprised to see how much you can save.
4. Negotiate directly with your fund. Armed with knowledge about other health funds’ deals, start squeezing yours. They may offer extra benefits to keep you as a customer.
5. Switch funds. Many Australians believe that if they switch funds there will be new waiting periods, but this is not the case. A majority of people stick with big funds but there are many smaller competitors — including not-for-profit funds — that offer good deals.
To join the Big Health Insurance Switch go to www.onebigswitch.com.au
* There is no obligation to take up any offer. This masthead’s publisher News Corp Australia and One Big Switch will earn a commission from any accepted deals. News Corp Australia is a shareholder of One Big Switch.
Originally published as How one in 10 people are avoiding the April 1 health funds premium rises
Grim reality for Aussie taxpayers
Australian households have picked up the bill for the country as mining companies pay less, a breakdown of the nation’s tax revenue reveals.
Cafe owner hits back on surcharge threat
Aussies will spend millions of dollars in additional costs as the price of visiting cafes, pubs and restaurants, but business owners say they are still falling behind.