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!
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.