The health insurance price hikes hitting you

Private health premiums will increase from April 1, writes Sophie Elsworth

HEALTH insurance members are about to be hit by premium increases on April 1 but many are unaware their costs will rise.

The nation’s health funds will implement their annual price hikes at the start of next month. The average premium rise this year is 2.92 per cent.

On hospital and extras cover this will add an extra $56 a year for singles with bronze cover, $130 for a couple with silver cover and $180 for a family with gold cover.

Financial services firm Canstar quizzed 1000 Australians with private health insurance and found:

39 per cent

● don’t know premiums increase annually.

● don’t know what tier hospital cover (gold, silver, bronze, basic) they have.

● pay an average of $219 for private health insurance each month.

● stay with their same for fund for an average of 11.4 years.

Canstar’s group manager of research and ratings, Mitchell Watson, said many Australians should have received their premium change updates from their fund by now.

“It should be a prompt to make sure you do have the right

19 per cent Australians Members

policy for you,” he said. “You don’t have to do anything and you can let it roll through by accepting the premium increase, but it’s on each person to make sure they are paying for what they need and are getting the best deal.”

Latest Australian Prudential Regulation Authority figures show nearly 10,000 Australians dumped their hospital cover in the December quarter.

The huge drop was mainly people aged between 20 and 34.

Hospital cover member numbers are now at their lowest level in more than 12 years.

APRA executive Geoff Summerhayes last month slammed the viability of the private health insurance sector and called for an urgent review into its future.

Premium increases for April 1

Australian Unity 2.79% Bupa 3.26%

CUA 3.99%

Defence Health 3.49% GHMBA 3.34%

HBF 1.98% health.com.au 3.94% Medibank 3.27%

NIB 2.9%

He claimed only three funds would have a sustainable business model by 2022.

CUA Health spokesman Josh Edwards said insurers should give members advice on how they could save on their policies, including increasing excesses to get a lower premium price.

He said March was a period of “heightened activity”.

“We recommend people prepay as much as they can because if you prepay before the rate change (on April 1) you get to lock in the lower rate and also the higher government rebate,” Mr Edwards said.

HBF head of product Blake Delcanho urged Australians to jump funds if it meant getting better cover at a cheaper price.

“Unlike your general home or motor insurance you can switch at any time and your waiting times go with you – it can often take just a few minutes,” he said.

To compare products, visit privatehealth.gov.au.