Private health insurance hikes to hit hard

THE soaring cost of private health insurance has prompted many Australians to take action and change their policies ahead of the April 1 price hikes.

The annual premium rise is due to kick in next week, pushing up premiums by an average of 2.92 per cent.

And while the coronavirus pandemic will put further pressure on households’ finances, this will be another factor in Australians reassessing their cover.

New research from health insurance comparison website iSelect found, in the past two years, 43 per cent of Australians had taken action to change their cover.

It also showed just 14 per cent had switched insurers altogether, while 12 per cent downgraded their coverage.

Single mother of two Freya Cutelli, 41, has silver hospital and extras cover. She switched providers recently to save.

“I’m by myself so I’m trying to cut costs,” the buying manager said. “So, it’s making sure I have coverage for the kids. So as long as their eyes, teeth, hospital and ambulance are covered, I’m OK.”

Before switching she was paying $317 per month but that has now dropped down to $253 – a saving of $64 per month or $768 annually.

iSelect spokeswoman Laura Crowden urged members to check

how much their premium was rising before the new prices started and pushed up the average family policy by $127 a year. She also warned some changes to hospital cover tiers – gold, silver, bronze and basic – were introduced in April 2019, which meant some policies changed in terms of coverage and price.

“If you haven’t reviewed your cover within the past 12 months you could be paying for things you don’t in fact need,” Ms Crowden said.

Bupa’s director of customer service, Sally Damiani, said members should phone their fund or a rival fund and ask questions.

“Talking to health insurers directly, as opposed to a comparator service, will give you access to the most accurate information on benefits, waiting periods and out-of-pocket costs,” she said.

For those wanting to save before April 1, Ms Damiani said prepaying for 12 months could make a big difference.

“On average a family would save just over $200, while a single would be approximately $100 better off over the year,” she said.

Medibank chief customer officer David Koczkar said members should “review their cover and see if it meets the needs of you and your family”.

To compare all policies, visit privatehealth.

gov.au.