Last year’s Australian Prudential Regulation Authority (APRA) figures make for interesting reading. In the final three months of 2020, a staggering 9,400 people dropped their private health coverage.
Why? The constantly rising costs.
What’s more, the biggest decline came in the 25-29 age bracket. That means thousands of young families left themselves without basic hospital cover.
That’s potentially dangerous.
Maybe yours is one of them. Or maybe you’ve seen the news about the premium increases that will come your way on October 1st.
Whatever the case may be, the average annual cost of health insurance for young families comes in at $4,286. And if you add obstetrics to the mix, that rises to $5,385.
Source – Canstar
And when October comes, you can lump an extra 2.92% on top of those numbers.
So, what can your young family do? The good news is that you don’t need to ditch your coverage altogether. In fact, that could be potentially the most unsafe decision you can make.
Instead, you can hone in on the stuff that healthcare providers include that you’ll never use. Ditch these aspects of coverage and you may be able pull your premiums down.
#1 – Cataracts
Do you know the average age of a cataract surgery patient in Australia?
It’s 75.8 years old.
If that’s the case, why are you paying a premium for cataract coverage? The likelihood of you or anybody in your young family needing it is truly minuscule. In fact, only 1 in every 4,500 children experiences issues with cataracts. And yet you may find yourself paying through the nose for cataract coverage. Check your policy and get rid of it.
Source – HealthEngine
#2 – Joint Repair/Replacement
Estimates place the average age for hip replacements in women at 73 and 68 in men. For knee replacements, the numbers aren’t much lower. They come in at 69 for women and 68 for men.
Source – Australian Ageing Agenda
You likely don’t need to pay for coverage until you approach your 50s. And if that’s the case, there’s certainly no need to pay higher premiums for your family either.
Again, check your policy’s fine print. If you’re paying for joint issues, get an expert comparison to check your policy against others on the market.
#3 – Pregnancy Cover
Look at the difference in the numbers cited above. Having cover for obstetrics in your policy adds an average of $1,099 to your annual insurance bill.
If you want to have more kids then paying those fees is worth your while.
But if you’ve finished building your family, paying for pregnancy cover leaves you over $1,000 short per year.
Again, cut the cover from your policy. And if your provider won’t do it, get an expert comparison to find a provider that will.
The Medibank Court Case
We know what you’re thinking…
“My insurance provider wouldn’t sell me cover that I don’t need. This all seems a little overblown.”
If that’s the case, why did Medibank have to pay a $5 million fine this year for false representation of benefits? The court found that the company rejected 849 claims in a false or deceptive manner.
Not all insurers are as transparent as they should be in their practices. If you assume you’re not covered for something you don’t need, you may end up paying more than you should.
Source – ACCC
Is It Time to Switch?
You should always be willing to switch your insurance policy. In fact, switching can be both easy and stress-free. Best of all, insurance companies, by law, have to honour your waiting periods.
So if you’re paying for things that your family doesn’t need, maybe it’s time to make a change. Take advantage of our FREE comparison service today at no charge and no obligation. We’ll review a wide spectrum of providers and let you see how your policy stacks up.
Since launching, thousands of Australians have already jumped on board. Over 120,000 Australians have used Billysumo.com.au to compare their household expenses, with the ability to reduce their every costs being referenced as their number one reason for using the site.
Billysumo.com.au is a trusted online service that makes comparison shopping for vital health insurance easy. With the click of a button, they can help you find an affordable policy by stripping away the cover you don’t use, while saving you money on what matters to you.