How Much Will Your Costs Go Up?
As you may know, the insurance industry is reporting that the October 2020 price hike is the lowest in almost two decades of 2.92%. This is true… but it’s a half truth. Why? Because that’s the average across all providers.
It may not – and probably doesn’t – apply to you and your family. You could be paying higher, almost double in fact – your price may rise by as much as 5.63%.
Which may not sound like all that much… that is until we take a broader view. If we go back to 2015 you’ll see how much prices have actually risen:
● 2015 – 6.18%
● 2016 – 5.59%
● 2017 – 4.84%
● 2018 – 3.95%
● 2019 – 3.25%
Source: The Department of Health
On average parents are paying 26.1% more than they were since 2015. For every $1,000 that’s an extra $261 – money to pay for kid’s school supplies for the year.
But it gets worse: the annual increase outstrips inflation. And since 2001, private insurance costs have gone up by a whopping 300% over inflation!
And while 2.92% increase or even 5.63% doesn’t sound like much, it adds up. And that’s why you should always be reviewing your policy to see what you get for your money.
Are braces covered? Probably not.
What else are your kids not covered for?
Is your policy going up higher than the industry average?
And so on.
So, don’t be blinded… and always check the fine print.
Medibank Fined $5 Million For False Representations
You don’t need to look any further than Medibank. In July, a Federal Court ordered it to pay $5 million in penalties for the company’s false representations of the benefits.
Medibank falsely rejected at least 1,396 claims. The company’s ‘lite’ and ‘boost’ policies covered these procedures, but 849 members who lodged enquiries or claims were deceptively rejected.
So, again, check the fine print and always be ready to review your policy. Not only that, compare your policy against others. Get help from an expert who can take you by the hand.
Should You Consider Switching?
As we’ve mentioned, you should always be willing to switch. Health insurance is one of those things that may cause parents to fall into a false sense of security. But if the Medibank court case has proven anything, you have to check the fine print.
After all, it’s your kids health and wellbeing we’re talking about!
One of the easiest things to assess is the actual price increase of your policy – how much more will you really be paying for health coverage for yourself and your family?
You’ll also want to check if anything meaningful is changing in the policy – what’s the situation with braces? Other dental work? Coverage for measles? Chickenpox? Make the phone call and fact check your policy.
Is It Time to Make a Change?
Yes, costs are going up. Yes, coverage changes. And yes, we’re in a changing world because of COVID-19.
As October approaches insurances companies will be unleashing aggressive marketing campaigns. Many of those campaigns will have seemingly conflicting information. But there’s a very quick and easy way to get the answers you’re seeking – take advantage of our FREE comparison service.
At no charge and no obligation, we review a wide spectrum of providers and see how your policy stacks up against the rest. We’ll also give you the honest-to-earth truth about the price increase of your policy.