Australians consider going without private health insurance cover

CUSTOMERS across Australia are considering going without health insurance cover as premiums soar to unmanageable heights. And it’s about to get worse.

EXCLUSIVE

SOARING health insurance premiums have struck a nerve with consumers as more than half consider going without cover.

Insurance premiums have jumped by 70 per cent since 2008 and on April 1, policies will climb on average by 3.95 per cent.

This will sting families an additional $164 annually and experts have warned Australians they should break their “set and forget” mentality and review their cover.

Health insurance premiums have been rising every year and continue to hit customers.

New Galaxy research compiled for comparison website iSelect has revealed 57 per cent of Australians are reconsidering the worth of health insurance and about 36 per cent are struggling to justify the cost.

And in the past year one in two people voted with their feet on health insurance, either ditching or switching their cover.

HEALTH: Beat the April 1 health insurance price hike

Medibank’s chief customer officer David Koczkar urged consumers to “review their cover regularly.”

“This year we are proactively contacting more than 250,000 customers to make sure they have the right cover,’’ he said.

“There’s the option to prepay their health cover for up to 12 months at the existing rate before April 1 but what’s more important is they are choosing the cover is right for them.”

Consumers should understand the inclusions and exclusions on their policies.

Latest private health insurance statistics show in December 45.6 per cent of the population have hospital treatment cover.

INSURANCE: Health insurers leave customers in the dark of policy increases

This was a decrease of 0.2 per cent or fall of 12,300 policies for the December quarter.

ISelect spokeswoman Natalie Pennisi said customers must take action now to get a better deal and to do this they should simply pick up the phone.

ISelect spokeswoman Natalie Pennisi said consumers have plenty of options to switch and save.

“People have a choice and consumers need to take responsibility and understand what is available to them,’’ she said.

“Health insurance can be difficult to navigate and understand.”

The research revealed 36 per cent of people cannot justify the cost of health cover, but the main reasons for sticking with cover includes having peace of mind, maintaining extras cover for costs like dental and optical and reducing charges if a hospital admission is required.

Consumers can use privatehealth.gov.au to compare every provider and policy on the market, use financial comparison websites or contact health insurers directly.

The incentives to lure in new customers before April 1 include one month’s free cover, gift vouchers, movie tickets, Flybuys points and activewear.

[e-mail]

@sophieelsworth