Private health insurance members should check how much their premium rises before April 1
Rising private health insurance costs from April 1 made single mother-of-two Freya Cutelli take action and change her policy to save money. This is how she did it.
Health
Don't miss out on the headlines from Health. Followed categories will be added to My News.
The soaring costs of private health insurance has prompted many Australians to take action and change their policies ahead of the April 1 price hikes.
The annual premium rise is due to kick in next week, pushing up premiums by an average of 2.92 per cent.
And while the coronavirus pandemic will undoubtedly put further pressures on households’ hip pockets, this will be another factor in Australians reassessing their cover.
New research from health insurance comparison website iSelect found in the past two years 43 per cent of Australians had taken action to change their cover.
It also showed just 14 per cent had switched insurers altogether, while 12 per cent downgraded their coverage.
Single mother-of-two Freya Cutelli, 41, has silver hospital and extras cover and has used both components of her cover including for an operation and optometry.
She switched providers recently to save.
“I knew I wasn’t getting the best deal and there were things on my coverage that I didn’t need,” the buying manager said.
“I’m by myself so I’m trying to cut costs. So, it’s making sure I have coverage for the kids. So as long as their eyes, teeth, hospital and ambulance are covered, I’m OK.”
Prior to switching she was paying $317 per month, but that has now dropped down to $253 – a saving of $64 per month or $768 annually.
ISelect’s spokeswoman Laura Crowden urged members to check how much their premium is rising before the new prices start and pushes up the average family policy by $127 a year.
She also warned some changes to hospital cover tiers – gold, silver, bronze and basic – were introduced in April 2019 which meant some policies changed in terms of coverage and price.
“If you haven’t reviewed your cover within the past 12 months you could be paying for things you don’t in fact need,” Ms Crowden said.
MORE NEWS
The super move that could cost you dearly
Coronavirus panic buying ‘makes zero sense’
Side hustles you can start now
Experts weigh holiday options after virus grounds flights
Bupa’s director of customer service Sally Damiani said members should phone up their fund directly or a rival fund and ask questions.
“Talking to health insurers directly as opposed to a comparator service will give you access to the most accurate information on benefits, waiting periods and out-of-pocket costs,” she said.
She said for those wanting to save before April 1, prepaying for 12 months could make a big difference.
“On average a family would save just over $200, while a single would be approximately $100 better off over the year,” Ms Damiani said.
Medibank’s chief customer officer David Koczkar said members should “review their cover and see if it meets the needs of you and your family”.
“Understand what you are covered for and connect with your insurer,” he said.
To compare all policies visit privatehealth.gov.au.