How to save on health insurance by April 1
HEALTH insurance members have just two weeks to take action before premiums jump by an average of 3.25 per cent on April 1.
The industry is undergoing a massive overhaul to try and make insurance simpler for Australians, but with this still under way members can adopt these tips to help them save.
REVIEW YOUR PREMIUM
You should have your renewal notice by now, so read over it to make sure it’s the cover you want.
New analysis by health insurance comparison website iSelect found 29 per cent of policy holders will do nothing ahead of the April 1 increase.
HCF’s general manager of strategy, product and innovation, Lorraine Thomas, said members “can review or change their policies at any time”.
“There’s a view everyone has to do something by April 1 but this rush to change also comes with some risks,” she said. “You don’t need to make a knee-jerk reaction to switch before April 1.”
PAY UP FRONT
Ahm general manager Jan O’Keefe said if people could afford prepaying for health cover, it could be a good way to save.
“Customers can save money by paying their cover 12 months in advance before the premium increase comes into effect on 1 April,” she said.
Some funds even allow customers to pay up to 18 months ahead.
HOSPITAL COVER CHANGES
Funds are in the process of reclassifying hospital cover into gold, silver, bronze and basic product tiers.
iSelect found 36 per cent of members won’t bother to review their policy ahead of these changes.
Funds have until April 1, 2020 to implement these changes, so your renewal policy might not include a reclassification of your hospital cover.
EXCESS CHANGES
From April 1 members may have the option of saving by choosing a higher excess amount if they make a claim on hospital cover.
This depends on whether their fund has adopted the optional reform. Members could increase their excess from $500 to $750 for singles and $1000 to $1500 for families, resulting in decreased premiums.
LOOK FOR NEW DEALS
Many funds are rolling out enticing new offers at this time of year to lure in new customers.
This includes getting one month’s free cover and waiving some waiting periods. Some funds offer discounts if you pay by direct debit instead of credit card.