The recent health insurance reforms are a great reason to shop around for the cheapest health insurance. A change in the laws for private health insurance excess amounts is one of the main reasons. Read on to find out more.
What is an Excess?
An excess payment is an amount you pay out of pocket if you need to claim on your private hospital cover. You nominate this amount when taking out your policy, and many people choose to pay a higher excess. This lowers the monthly premium but it will cost more if you’re admitted to hospital. By choosing a lower excess, certainly your monthly premium will be higher.
How Has Private Health Insurance Excess Changed?
From 1 April 2019, insurers are able to offer policies with a higher excess. The previous limit for singles was $500, and for couples/ families it was $1,000, but now you can go as high as $750 for singles and $1500 for couples/ families.
What Level of Excess is Best?
Choosing the best level of excess is purely based on personal circumstances. If you’re relatively healthy and don’t expect to be admitted to hospital regularly, maybe consider a higher excess. This means your premium costs less, however you’ll pay a bit more if you need to claim.
If you have health issues and think there’s a chance of being admitted to hospital regularly, maybe a lower excess would be the smart option. While you’ll pay a bit more each month, you won’t be out of pocket as much when claiming.
Compare Deals and Get the Cheapest Health Insurance
Finally, if you’re considering changing your excess, why not shop around for a whole new policy? If you don’t look, you’ll probably never know what you could be saving. Billy Sumo compares policies and can find you the cheapest health insurance for your needs. Get in touch with us today!