An open letter on the effects that October’s rate rises will have for people 55 years or older


Because of the COVID-19 pandemic, the April insurance increase was moved to October. Discover the effects this increase will have and what you can do about it.
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Because of the COVID-19 pandemic, the April insurance increase was moved to October. Discover the effects this increase will have and what you can do about it.
In Australia, the annual increase in health insurance rates happens in April. But because of COVID-19 health insurance providers deferred it to October. The deferral happened because many clinics had to shut their doors temporarily. And those that stayed open limited their capacities for social distancing. Result? Many insurance holders - especially those in the 55 or older demographic - couldn’t make claims as easily. So it made sense to delay the increase. But the increase is coming… and it’s coming in October. And the people that’ll be most affected by the increase are our seniors - people who might be on a pension or rely on their retirement income to sustain them through their “Golden Years”. Which is why in the remainder of this article we’re going to dig deeper into how much the price increase affects you. We’ll also pull apart the numbers and reveal some eye-opening research we’ve uncovered about your coverage costs.

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.

When Numbers Don’t Reveal The Full Picture

You’ve probably heard the health insurance industry make a song and dance about how modest this year’s increase is. They’re saying it’s “only” 2.92%. And yes, while that may be the average, it doesn’t mean that’s the extra you’ll pay.

There’s a chance you could pay up to double. Yes, up to 5.63% more. And for people in their retirement years that can translate to serious extra money!

Source: The Department of Health

Here’s a breakdown of insurance premiums for mature singles by regions:

● NSW – $2,700
● VIC – $2,780
● QLD – $2,760
● SA – $2,658
● WA – $2,546
● TAS – $2,652
● NT – $2,345

Source: Canstar

After applying the average 2.92% increase, you can expect the following premiums starting in October 2020:

● NSW – $2,779
● VIC – $2,861
● QLD – $2,841
● SA – $2,736
● WA – $2.620
● TAS – $2,729
● NT – $2,413

But remember, that’s the average. You could be paying up to almost twice as much.

The Picture Is Far Worse Once We Dig Deeper

Very quickly a darker picture emerges when we go back in time. Since 2015 you’ll see how steeply health insurance premiums have been rising:

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

Since 2015 prices have gone up by a whopping 29.8%. And if we go back to 2001, private insurance costs have gone up by a whopping 300% over inflation!

So it begs one question…

Have your benefits followed suit and expanded with the price hikes?

If you’re like most people, you’re probably not sure.

This is how Medibank almost got away with falsely rejecting 849 claims. In fact, over the past five years, they rejected thousands of genuine claims and enquiries. They only got busted for it later and were fined $5 million.

Rightly so!

What to do: Check your policy. Check the fine print. And get an expert comparison of your policy versus others.

Should You Consider Switching?

Have you thought about switching insurance providers? Truth is, most seniors don’t do it out of fear they’ll miss coverage they’ve already got. And the insurance industry hasn’t really tried to clamp down those fears because it suits them.

For example…

Did you know that insurance companies have to honour your waiting periods, by law. It’s true!

But if the Medibank court case has proven anything, you have to check the fine print. And you should always be willing to at least explore your options.

We offer free insurance comparisons that include a broad range of providers.

Click here to get your comparison and see if there’s a policy that better suits your needs and maybe even at a lower cost.

There’s no obligation. And there’s no cost. Yes, it’s FREE.

Get started now:

  • Step 1: Confirm your state within the below map.
  • Step 2: Once you answered a couple of basic questions, 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.