Seeking healthy options

HEALTH insurance premiums are set to rise next week, leaving many considering switching for a healthier deal. Experts say five points need to be considered.

INSURER LOYALTY

Sticking with one insurer can mean missing out on better deals offered to new sign-ups.

Look for better deals on health comparison websites, individual insurers’ websites, or by phoning them direct.

EXCESS COSTS

A hospital visit can set you back $250 to $1000 in excess costs, but ISelect spokeswoman Laura Crowden said the right cover can lessen the blow.

“Look for a policy with either an excess or a co-payment,’’ she said. “Avoid policies that require you to pay both if admitted to hospital.”

Usually, the higher the excess, the lower the premium.

REVIEW EXTRAS

Regularly review extras, which cover expenses such as dental, optical and physio, to ensure you are getting value for money.

“Ask your fund for an annual claim statement which will show you how much you’ve paid for extras and how much you received back in benefits,” Ms Crowden said, suggesting opting for a set percentage back on extras (usually 50 to 80 per cent) up to an annual limit, rather than a set dollar limit.

LIFETIME LOADING

Designed to make people take out hospital cover earlier, LHC can be costly later in life, said Dr Dwayne Crombie, Bupa’s health insurance managing director .

“If an individual doesn’t purchase cover before 1 July following their 31st birthday, they will pay an additional 2 per cent loading every year, locking in the increase once they take out hospital cover, capped at 70 per cent,’’ he said. So take out hospital cover before age 31 to avoid escalated premiums.

PAYING UPFRONT

Premiums jump by 4.84 per cent on average from April 1, but paying a year in advance will avoid this increase and can end up saving you hundreds of dollars over the next 12 months.