Keen to get the inside scoop on how to get more out of your health insurance? Whether your goal is to save, get more cover, or gain more value, our industry expert tips may be able to help you.
1. Keep an eye out for short-term sweeteners early in the year
Health funds tend to push competitive short-term incentives in February and March before the annual premium rise on 1 April. That said, it’s essential to consider the overall value a health insurance policy could offer you and your household, rather than switching solely for an offer.
2. You could possibly lock in savings by paying in advance
Paying for your policy in advance can lock in its current premium before it goes up, which could save you money compared to paying in instalments through the year as premiums rise. Keep in mind this can be a significant expense to pay upfront, and in some cases putting the money you’d have otherwise spent in an upfront payment into a savings account or offset account could actually leave you better off for the year, depending on how much your premiums increase.
3. You don’t always have to serve wait times twice when switching
When you sign up for a health insurance policy, you may need to wait before you can claim for certain treatments. For example, if you’re planning to start a family, you’ll need to upgrade to a Gold-tier hospital policy at least 12 months in advance in order to can claim for pregnancy and birth-related services.
If you switch insurers, you may not need to wait again before you can claim. You can change providers as many times as you wish without serving extra waiting periods, as long as you stick to the same or lower level of cover.
Additionally, some insurers may waive the shorter waiting periods on selected extras for new members as a promotional offer.
4. You lose the extras you don’t use
Most health insurers reset limits on extras cover on the 1st of January each year. Consider setting a reminder in your calendar for near the end of the year - if you still have money to claim on these services, think about booking in for treatments or services you actually need before it resets at the beginning of the next year.
Some providers may offer you a rebate on unused extras at the end of the year. Ask your provider if this is the case.
5. Empty nesters might be able to keep their kids on the family policy
Kids moved out? A family health insurance policy is often only marginally more expensive than a couples policy, so it may be cheaper for older children to stay on your policy rather than take out their own until they turn 31.
6. Couples insurance may not suit every couple
Some couples may find a combined couples health insurance policy affordable and convenient. However, if you have different health needs to your partner, it may be cheaper and more beneficial to take out individual health insurance policies, rather than paying for extras that one of you likely won’t be using.
7. You may not need to pay a gap fee
Before going for a medical treatment, consider checking with your surgeon, anaesthetist, extras provider and any other specialists if they participate in your provider’s no-gap or known-gap scheme in order to avoid surprise medical bills. This includes considering choosing hospitals your insurer has agreements with to ensure your accommodation and theatre fees are fully covered. Make sure to get a detailed Informed Financial Consent (IFC) quote from every provider involved so you know exactly what you’ll pay before treatment.
8. You can pay less in premiums by raising your hospital excess
Opting for a higher hospital excess (for example, $750 instead of $250) can help to lower your health insurance premiums. However, make sure you can comfortably afford to pay this excess if you ever need to make a claim.
9. Loyal customers may benefit from the same special offers as new customers
Even if you’re happy with your current health insurance policy, you may still be able to benefit from the specials, deals and incentives that your insurer offers to attract new customers. But you won’t be offered these benefits automatically - you’ll need to call the insurer and ask.
Even if you aren’t offered exactly the same deal, you could still benefit from a different discount for your trouble. Under the Private Health Insurance Act, insurance can give existing members up to a 12% premium reduction.
