April 1 private health insurance premiums are looming
Australians should be closely examining their private health insurance ahead of price increases from next month. This is what you need to consider before sticking with your insurer.
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Health insurance members are about to be hit by premium increases on April 1 but many are unaware their costs will rise.
The nation’s health funds will implement their annual price hikes at the start of next month – the average premium rise this year is 2.92 per cent.
On hospital and extras cover this will add an extra $56 a year for singles with bronze cover, $130 for a couple with silver cover and $180 for a family with gold cover.
Financial services firm Canstar quizzed 1000 Australians with private health insurance and found:
• 39 per cent don’t know premiums increase annually.
• 19 per cent don’t know what tier hospital cover (gold, silver, bronze, basic) they have.
• Australians pay an average of $219 for private health insurance each month.
• Members stay with their same for fund for an average of 11.4 years.
Canstar’s group manager of research and ratings, Mitchell Watson, said many Australians should have received their premium change updates from their fund by now.
“It should be a prompt to make sure you do have the right policy for you,” he said.
“You don’t have to do anything and you can let it roll through by accepting the premium increase, but it’s on each person to make sure they are paying for what they need and are getting the best deal.”
Latest Australian Prudential and Regulation Authority figures show nearly 10,000 Australians dumped their hospital cover in the December quarter.
The huge drop was mainly people aged between 20 and 34.
Hospital cover member numbers are now at their lowest level in more than 12 years.
APRA executive Geoff Summerhayes last month slammed the viability of the private health insurance sector and called for an urgent review into its future.
He claimed only three funds would have a sustainable business model by 2022.
CUA Health spokesman Josh Edwards said insurers should give members advice on how they can save on their policies, including increasing their excesses to get a lower premium price.
He said March was a period of “heightened activity”.
“We recommend people prepay as much as they can because if you prepay before the rate change (on April 1) you get to lock in the lower rate and also the higher government rebate,” Mr Edwards said.
HBF head of product Blake Delcanho urged Australians to jump funds if it meant getting better cover at a cheaper price.
“It’s not hard to switch,” he said.
“Unlike your general home or motor insurance you can switch at any time and your waiting times go with you – it can often take just a few minutes.”
To compare products visit privatehealth.gov.au.
RISING PREMIUMS
• Australian Unity 2.79%
• Bupa 3.26%
• CUA 3.99%
• Defence Health 3.49%
• GHMBA 3.34%
• HBF 1.98%
• health.com.au 3.94%
• Medibank 3.27%
• NIB 2.9%
Source: health.gov.au
Originally published as April 1 private health insurance premiums are looming