What the latest October premium rise means for people older than 50


On October 1st, health insurance premium rates have increased substantially for some. This is what older Australians need to be aware of when it comes to their existing payments.
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On October 1st, health insurance premium rates have increased substantially for some. This is what older Australians need to be aware of when it comes to their existing payments.
Each April, the majority of insurers around Australia increase their health insurance premiums. However, that didn’t happen in 2020 and we can look to COVID-19 as the reason. Insurers delayed the increase until October 1st to give customers a little relief. But this date has already passed, and older Australians are very likely now paying more for their premium. This increase in rates could now provide the catalyst that makes switching a wise choice.

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.

Now, let’s find out what price can senior Australians expect their Health Insurance to be.

On average, over 50s who haven’t compared their premiums lately can expect that their costs have gone up by 2.92% on average. But there’s something important to remember here – 2.92% is just the average. It’s very possible that some insurers have increased their premiums by much more than that. In fact, some were set to go as high as 5.63% on Oct 1st, which is almost double the national average.

Let’s dig into the numbers. The following is the average amount that seniors paid for health insurance before the price increase based on where they live, compared to how much they are paying after the premium increase that took place on October 1st:

NSW

VIC

QLD

SA

WA

TAS

NT

Average payment for health cover prior to Oct 1st

$2,700

$2,780

$2,760

$2,658

$2,546

$2,652

$2,345

Average payment for health cover after Oct 1st

$2,779

$2,861

$2,841

$2,736

$2,620

$2,729

$2,413

Highest possible payment for health cover after Oct 1st

$2,852

$2,937

$2,915

$2,808

$2,689

$2,801

$2,477

Source: Canstar

So, people who are too lazy to compare their rates could very possibly be paying up to $160 more per year following October 1st. That’s why it’s so important to review your policy each year, compare the current policy against others – and consider making a switch if needed. There could always be an improved deal on offer.

One of the main questions we are asked lately is what should be done first, compare alternatives or check what the current insurer has to offer?
In this case the answer is clear and simple – compare. The reality is that not all insurers offer their customers the transparency that you expect from them. We saw this recently with the $5 million fine handed down to Medibank. They got that fine because they falsified benefits and illegally refused nearly 1,400 legitimate claims*.

The point is that you can’t assume you know everything that you need to know. Check your policy against competitors to find out what is the most suitable option for you and your family.

Now is the time to get started:

  • Step 1: Confirm your state within the below map.
  • Step 2: Confirm for whom you wish to compare policies, and you will be presented with our top available quotes from our Health Insurance panel.

Since launching, thousands of Australians have already jumped on board. Over 100,000 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.
*https://www.accc.gov.au/media-release/medibank-to-pay-5-million-in-penalties-for-misrepresentations-to-members-about-benefits