How much are you paying?
IT’S WORTH IT FOR THE PEACE OF MIND
Name: Martin Age: 31 State: NSW Sydney man Martin is constantly on the move, with cricket every summer, football in winter, spin classes, running festivals and yoga. He is healthy – and committed to staying that way – but he’s always had health insurance. “I’ve always found it an investment worth paying for,” he says. “There’s a lot of debate, and I think what potentially confuses the issue is when the focus is on taxes and rebates and not on health coverage and treatment outcomes. We are fortunate to have a world-class public hospital system, but I believe it’s good to have additional cover for elective treatments that you know you will need.” Martin had four impacted wisdom teeth surgically removed in his early 20s, and hospital cover provided peace of mind, he says. “The cover was worth it for being able to schedule it at a time of my choosing, and having a private room for recovery.”
1What is he paying?
Martin pays $1036 a year (well below average for his income bracket) for Medibank basic hospital and basic extras. “This includes a reduced rebate because I’m a higher income earner,” he says, “so I’ve opted to pay the extra now instead of the tax adjustment in my tax return.”
2How does he do it?
“Medibank had the best option when I turned 25 and was kicked off my parents’ cover,” says Martin. The policy had zero excess for hospital cover for young singles. “They are no longer the cheapest, but they’ve been good enough for me to stay.” Once you’ve found a good price, the next step is to get value for money out of your premiums, he says. “I buy a new pair of prescription glasses each year, and get about half back on my annual dental check-up, so my extras cover is worth it. Medibank also provides a 15% discount to existing customers on travel insurance, which I took advantage of for my next overseas trip in May.”
3How you can do it: Martin’s tips
Pay annually before the premium increase on April 1 each year, or schedule six-monthly premiums to be paid in March and September.
Take a good long look at extras cover. Don’t cover yourself for alternative therapies if you don’t need them.
Read your policy to find what other benefits your health insurance offers, such as discounted travel insurance, subsidised gym membership or discounted movie tickets.