What the October 1st Price Rise Means for People Older Than 50


On October 1st, your health insurance premiums will increase. This is what you need to know about what’s coming up.
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On October 1st, your health insurance premiums will increase. This is what you need to know about what’s coming up.
Every April, insurers around Australia increase their health insurance premiums. But that didn’t happen in 2020 and we can look to coronavirus as the reason. Insurers delayed the increase until October to give customers a little relief. But it’s still coming. And seniors will likely face the largest price hike of all! The increase could cause changes to your insurance policy that makes switching a wise choice. Let’s find out what you can expect when October comes around.

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.

How much will your premium increase by?

On average, seniors can expect their premiums to increase by 2.92%. But there’s something important to remember here…

2.92% is just the average. It’s very possible that your insurer could increase their premiums by much more than that. In fact, some are set to go as high as 5.63%, which is almost double the national average.

Let’s dig into the numbers. The following is the average amount that seniors pay for health insurance every year based on where they live, compared to how much they may pay after the premium increase 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, you can likely expect your premium to cost up to $160 more per year once October 1st rolls around. That’s why it’s so important to review your policy, check with your insurer, and consider making a switch if needed.
It’s why it’s also a good idea to compare your policy against others – there’s always a better deal on offer!

What happens if I’ve paid in advance?

Paying in advance is a great way to guarantee your coverage and rates for an entire year. And in most cases, insurers will honour your pre-payment.

For example, let’s say you paid for a full year back in July 2020. That means the increase likely won’t apply to your premiums until July 2021.

Notice that we said likely here.

Not every insurer treats pre-payment the same way. And again, that’s why it’s so important to stay on top of your policy and consider whether now is the time to make a switch.

How will I know when my premium will increase (and what steps should I take)

Your insurer should notify you about their planned increases.

You should receive a letter, email, or a text message that notifies you of the following:

1. How much your premiums will increase or decrease by.
2. When those changes will apply to you.

However, it’s likely a good idea to get ahead of the game here. Instead of waiting for your provider to tell you, get in touch and ask them now. Find out exactly what you can expect when October 1st rolls around so that you can prepare.

Why do it early?

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.

Our point is that you can’t assume you know everything that you need to know. Check your policy’s fine print and contact your insurer to find out what you can expect.

Don’t like what you hear?

Then perhaps there’s an insurer out there that can provide a better policy for seniors. Use our FREE comparison tool today to check with a wide range of providers from all across Australia. We’ll give you the numbers and ensure you know exactly which choice works best for your needs.

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.