Switching health insurance saves Melbourne man over $200 a year
At a time when household bills are rising, health insurance premiums are also going up. But there are ways to try and reduce the cost.
Our articles are dedicated to helping you find the right product at the right price. We may receive revenue from affiliate and advertising partnerships for sharing this content and when you make a purchase. Learn more
Australian households already battling increasing cost of living pressures, with many finding they’re paying more at the grocery checkout and fuel bowser each week, are facing another price hike.
The cost of private health insurance is due to go up from April 1 by an average of 2.70 per cent, adding an extra expense of $125 per year on average for families, and $58 for singles.
While some funds have announced they will not lift premiums just yet, many Australians don’t even know they are facing the increase, according to research by comparison website iSelect, which found half of people weren’t aware that their premiums are going to increase this year.
One upside for consumers is the looming price rise has led to health funds offering deals and discounts to entice people to switch insurers, including waiving waiting periods on some extras or providing several weeks of free cover.
Melbourne-based occupational health and safety worker and footy player Steven Walters-Kepada had a win on his health insurance costs, saving $20 per month or $240 per year by switching to a better hospital and extras deal at another health fund after using iSelect’s comparison service.
Could you save on your health cover?
“They found another suitable health insurance with a lower premium and extra benefits which was really exciting for me,” the 33-year-old said.
Mr Walters-Kepada said he likes to have health insurance to help cover his prescription glasses, dental check-ups and cleans and massage to help with recovery from his very active lifestyle playing footy and adventuring outdoors.
He also said he values the peace of mind of having cover for accidents or unexpected health issues that mean he might need to get surgery in a hospital.
He said any savings were welcome and can go towards paying for other rising expenses like petrol and house repayments.
“It doesn’t matter which state or suburb you live in at the moment, anywhere you can save money in the budget is ideal.
“I think that’s why a lot of people shop around.”
Many health funds including Medibank and Bupa are advertising offers and incentives to switch before premiums increase.
These include waiving waiting periods on some extras, providing several weeks of free cover, handing out frequent flyer points or even cash.
iSelect spokesperson Sophie Ryan said now is a good time to review your policy to ensure it still meets your needs and budget, because you might find you’d be better off switching.
“We’re encouraging health fund members to take some kind of action, especially when our research highlights that there are savings or better value to be had for many if they do shop around”, Ms Ryan said.
Click to switch your health cover
iSelect research found that 85 per cent of policy holders who switched health funds found a better deal.
Of those who switched, 39 per cent said they saved at least $100 off their annual premiums and 18 per cent saved at least $300 a year.
With health funds kicking off premiums hikes from the end of this week and others over the coming months, now is the opportunity to review your cover and give yourself a discount.
You could get cheaper cover with hacks like paying a higher excess to lower your premiums, locking in your current premiums by paying for the year upfront and looking out for added benefits that suit your lifestyle like gym membership discounts.
iSelect recommends you do these five things to find suitable health insurance:
1. Review your policy regularly
2. See if paying a higher excess could save you money on premiums
3. Look out for offers, deals and freebies
4. Only pay for extras that you actually need
5. Know your rights, such as that any waiting periods you’ve already served must carry over if you switch to a new health fund.
RELATED: Easiest ways to save on health insurance
