Health insurance extras cover set to reset on January 1, 2024

Australians have just four days left to potentially claim thousands of dollars back in health cover costs. Here’s what you need to know.

Australians with private health insurance are potentially leaving thousands of dollars on the table. Picture: NCA NewsWire / Nicholas Eagar

Australians with private health insurance coverage have just four days left to potentially claim thousands of dollars in unused healthcare visits, from trips to the dentists to a session with a physiotherapist.

Nearly all major health insurance companies will reset their “extras” cover from January 1, meaning if policyholders have not used up the coverage amount they have paid for, they will lose the money and cannot claim it back in 2024. On average, that figure is $1300.

Major insurer Medibank Private offers a Top Extras product with a yearly limit of $1420.44 for a range of healthcare provisions, from root canal work at the dentist to consultations with a speech therapist, but if a customer has only used up $300 in visits over 2023, they have left more than $1000 on the table.

Compare the Market health insurance head Lana Hambilton warned that Australians needed to move quickly to avoid losing “money down the drain”.

“We know that the industry-wide increase to premiums was 2.9 per cent on average this year and the last thing we want to see is people paying for cover they’re not using,” she said.

Major health insurers like Bupa will reset their extras coverage on January 1, 2024. Picture: Supplied

“So, if you’ve been delaying that visit to the dentist, you’re overdue for your optical appointment or you’ve pushed back a visit with a physiotherapist, time may be running out to maximise your policy’s benefits this year.”

AIA, Bupa, HCF, Suncorp, Qantas, Medibank, GMHBA, Union Health, Australian Unity, Westfund and NIB will all reset their extras cover from January 1.

The extras policyholders can claim generally include non-hospital care such as dental, orthodontic, endodontic, optical, physiotherapy, remedial massage, chiropractic, podiatry, orthotics, exercise physiology, psychology, non-PBS pharmaceuticals, eye therapy, occupational therapy, speech therapy, hearing aids, dietitian services, health aids and appliances and ambulance services.

The amount a policyholder can claim back depends on the level of cover taken out.

Compare the Market’s Lana Hambilton says Australians should consider switching insurance products if they do not use up all the extras cover they pay for. Picture: Supplied

NIB’s Core Extras product offers limits of $250 for optical care, $600 for general dental, $600 for major dental and $350 a year for physiotherapy, with the provider covering 60 per cent of costs up to the limit.

Ms Hambilton recommended that Australians reassess their coverage to determine if they had taken out the right product.

“If you’ve got to the end of 2023 and haven’t claimed as much or for as wide a range of services as you thought you would, you may wish to move to a lower level of cover,” she said.

“The right product for you will still allow you to access the out-of-hospital services you use but for a smaller cost.

“Switch rather than ditch. If you’re getting to the pointy end of the year and aren’t sure if you’re getting value from your extras, consider what you do use and if you could save by cutting back on what you don’t.”