Last-minute ways to save on your health insurance cover

Health insurance premiums will rise by an average of 3.25 per cent on April 1 but there are things you can do to save money.

Health insurance members have just two weeks to take action before premiums jump by an average of 3.25 per cent on April 1.

The industry is undergoing a massive overhaul to try and make insurance simpler for Australians, but with this still underway members can adopt these tips to help them save.

REVIEW YOUR PREMIUM

You should have your renewal notice by now so make sure you read over it to make sure it’s the cover you want.

New analysis by health insurance comparison website iSelect found 29 per cent of policy holders will do nothing ahead of the April 1 increase.

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HCF’s general manager of product, Lorraine Thomas, said members “can review or change their policies at any time”.

“There’s a view everyone has to do something by April 1 but this rush to change also comes with some risks,” she said.

“You don’t need to make a kneejerk reaction to switch before April 1.”

Dentist Dr David Kozor also said people should be aware if changing their type of cover or signing up for the first time, and should check what waiting periods applied.

“It can be a reality check of how much you can save if you have cover,” he said.

“Without a doubt it ends up costing patients more for dental work if they don’t have cover, and there’s also waiting periods.”

Private health insurance price rises on April 1 and dentist Dr David Kozor said Australians should check what cover they have. Picture: News Corp

PAY UPFRONT

Ahm general manager Jan O’Keefe said if people could afford prepaying for health cover, it could be a good way to save.

“Customers can save money by paying their cover 12 months in advance before the premium increase comes into effect on 1 April,” she said.

Some funds even allow customers to pay up to 18 months ahead and lock in the premium before the next two price rises.

HOSPITAL COVER CHANGES

Funds are in the process of reclassifying hospital cover into gold, silver, bronze and basic product tiers.

iSelect found 36 per cent of members won’t bother to review their policy ahead of these changes.

Funds have until April 1 2020 to implement these changes, so your renewal policy might not include a reclassification of your hospital cover.

EXCESS CHANGES

From April 1 members may have the option of saving by choosing a higher excess amount if they make a claim on hospital cover.

However, this depends on whether their fund has adopted the optional reform.

Members could increase their excess from $500 to $750 for singles and $1000 to $1500 for families. As a result their premiums will slightly decrease in price.

LOOK FOR NEW DEALS

Many funds are rolling out enticing new offers at this time of year to lure in new customers.

This includes getting one month’s free cover and waiving some waiting periods. Some funds offer discounts if you pay by direct debit instead of credit card.

@sophieelsworth