The over 65 guide to outsmarting your health fund

Private health cover is about to get even costlier for older Aussies, thanks to the Federal Government’s proposal to cut the health insurance rebate for over 65s.

If you’re in this age group, you were probably already paying a pretty penny for private health. This year’s April premium hikes saw Gold hospital cover for over 65s jump by a hefty $400 a year on average.

Canstar crunched the numbers and found, if you’re over 70 with top hospital cover, the proposed cuts to the rebate could see you paying an extra $410 a year. Stack that on top of the April price rises, and you’re looking at an $810 annual hit. Oof!

Canstar’s Data Insights Director Sally Tindall warns that many older Australians won’t be able to cop this double whammy, particularly those on modest fixed incomes. “Some may even be forced to reconsider the level of cover they hold,” she says.

Tips to combat the higher cost of private health cover

Worried about how cuts to the rebate could hit your hip pocket? Here are some handy tips and tricks for cutting the cost of premiums without sacrificing the cover you need:

Make sure you’re getting the right rebate!

Your private health insurance rebate is based on your age and income, and it’s important to make sure your income estimate is still correct. If you’re earning less than you were once were, you could be entitled to a higher rebate. If you haven’t checked for a while, you can jump onto your insurer’s website or app to see if your details are accurate, or just give it a call. While you’re on the phone, you could even try this next strategy.

Ask your insurer for a better deal on premiums

If you’ve been with your health fund for a few years, your premiums have likely crept up quite a bit, but you can call your health insurer and negotiate a discount. Health funds often have deals and offers to attract new customers, but as a loyal customer, you won’t be offered these same perks–unless you ask! By law, health insurers can give discounts of up to 12% a year. Your insurer may not be willing to knock that much off, but it’s worth picking up the phone.

Loyalty isn’t always rewarded, so shop around

Health insurers love your loyalty–the longer you stick around, the more you’ll pay in premiums. That doesn’t mean they reward loyalty, though. Before your policy renewal rolls around for another year, take the time to compare and see if any other health funds out there can offer you a better deal. You won’t need to re-serve any waiting periods you’ve already served if you switch right from one fund to the next. And who knows? If you find a better deal, call your insurer and see if it will offer you a discount to keep you.

Make sure your cover suits your stage of life

Health needs change over time. If you’ve had the same health insurance cover for years, you may well be paying for more you need. A policy you took out at age 40 might not suit you now. For example, Gold hospital includes expensive pregnancy and birth cover, which is something you’ll no longer need over 65. Likewise, if your kids are grown and have left your policy, it doesn’t make sense to keep paying for extras like orthodontics.

Don’t assume Gold is always a winner

If you’re currently on a Gold hospital insurance policy, you may worry about moving off it, because Gold is best, right? Not necessarily. The ‘best’ policy for you is one that has cover for what you need at a price you can afford. Switching to a Silver+ hospital policy could let you keep any inclusions you need, like cataract surgeries and joint replacements, without paying the Gold price.

Remember, couples insurance may not suit every couple

A combined couples health insurance policy can be more affordable and convenient, but if you and your partner have different health needs, you may be overpaying. Taking out individual health insurance policies could work out cheaper than paying for extras or inclusions one of you isn’t using. You can always get a quote to compare prices side-by-side, with no obligation to switch.