If You’re Born AFTER 1985, Here’s How the October 1st Price Increase May Affect Your Private Health Insurance Cover


The pandemic has brought many changes, with many more to come. Take a look at what the future has in store... and what you can do about it.
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The pandemic has brought many changes, with many more to come. Take a look at what the future has in store... and what you can do about it.
Let’s face it, the COVID-19 pandemic has left us all wondering about the future. When do things get back to normal? Will they ever? No certainty seems to exist. Things are changing rapidly and good luck trying to keep up. The same applies to your health insurance. Pushed back from 1 April, the annual increase will now go into effect on 1 October. Among all Australians, young couples in particular are having a hard time understanding how those changes affect them. If you’re looking for answers, you’ll find them in this article.

Should you re-evaluate your Health policy? – Check now, it’s simple:

  • Step 1: Select your current health fund below.
  • Step 2: Once you answered a couple of basic questions, you will have the opportunity to compare quotes from multiple health providers.

Premiums Going Up In Price

One change that you might’ve heard about is about the premiums themselves. You might have also heard that the health insurance industry is hailing it as the smallest change in almost 20 years.

But this only tells part of the story.

Yes, the industry average rate of change is only 2.92%. But this is coming on the heels of years of much higher increases. Take a look:

● 2014 – 6.20%
● 2015 – 6.18%
● 2016 – 5.59%
● 2017 – 4.84%
● 2018 – 3.95%
● 2019 – 3.25%

Source: the Department of Health

When you add the 2.92% in October, the cumulative change over the past 7 years isn’t so small anymore, is it?!

And what do you think is going to happen in 2021? And 2022? And beyond that? Prices will KEEP rising.

It gets worse. Here are two things you probably don’t know:

First, and this is something the industry never openly reveals – the annual increase outstrips inflation, and since 2001, it’s done so by a staggering 300%!

Second, the industry is saying that the average increase for this year is only 2.92%. But that’s the average – yours could be lower or it could be almost double!

What to do: Review your policy. Check the fine print. And always be willing to compare providers to see if you can get more for your buck.

COVID-19 May Get Classed as a Pre-Existing Condition

Some insurers are thinking about classifying COVID as a pre-existing condition. This makes sense considering how sinister this virus is.

What this means: if you’re infected and develop further complications, you might be able to make a claim. However, not all insurers will include this and it’ll come down to your choice.

What to do: So check with your provider. And if you’re not happy with their answer, compare your provider to others.

The Private Health Insurance Roll-Of-The-Dice

In the final quarter of 2019, almost 9400 people ditched private health insurance. The largest decline was among those aged 25-29.

Source: The Australian Prudential Regulation Authority

Why? Unaffordability. Young people simply gave up and gambled they weren’t going to get seriously ill.

But that’s what it is – a gamble. It’s risky. Very risky.

If YOU are young and healthy, does that mean that you should drop out of private insurance, too? No! A much more sensible thing to do is find a better provider.

Check the Fine Print

Private health insurance is tricky enough. It’s even worse when your insurer doesn’t pay out on a claim you’re eligible for!

Take Medibank as an example. In July 2020, the Federal Court fined the insurance provider $5 million for false benefit representations. A total of 1396 claims for joint reconstruction and investigation was wrongfully rejected. Hundreds of policyholders had to pay out of pocket for something that their health insurance actually covered!

Source: ACCC

Should You Switch?

Everything that you‘ve seen here raises a simple question:

Is it time to switch insurance providers? Maybe. Maybe not.

At the very least, you should review your policy to see if it covers everything you need.

Better yet, you should check and see if there’s a better option.

Free, No Obligation Comparison

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.

 

Get started now:

  • Step 1: Confirm your state within the below map.
  • Step 2: Once you answered a couple of basic question, you will have the opportunity to compare quotes from multiple health providers.

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.

This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.