According to the Australian Prudential Regulation Authority’s (APRA) most recent private health insurance statistics, 55.7 percent of the Australian population has a health insurance extras (general treatment) policy. Comparatively, only 47 percent have hospital coverage.
Many Aussies, it seems, place more value in an extras policy over a hospital policy – perhaps relying on the public health system for their hospital needs.
But how much do Aussies actually get back from extras coverage in benefits compared to what they pay in out of pocket medical expenses? We can get an idea of this by looking at APRA’s latest statistics for the June quarter of 2016.
How much do we get back in extras benefits?
In the year to June 2016, the average extras (general treatment) benefits paid out per person was $387. Is this more or less than your extras annual premium? Compare extras only policies. This amount was up on last year’s figure of $376.
By far the largest component of this was dental benefits, which on average paid out $203 per insured over the year.
Which age groups receive the most extras benefits?
Of course, not everyone will get as much from their extras cover as the next person. This widely varies depending on health, age and level of coverage.
With regards to age, the groups with the highest average rebates per person (over $600 in 12 months to June 2016) are:
- 65-69 year olds
- 60-64 year olds
- 70-74 year olds
The age groups with the lowest average rebates per person (under $350 in 12 months to June 2016) are:
- 0-4 year olds
- 5-9 year olds
- 15-19 year olds
Out of pocket expenses by claim type: How much of the medical fees are covered?
But how much of the fees, on average, do these extras benefit payments cover? The table below gives an indication of the out of pocket expenses for the different extras claims categories over the June 2016 quarter.
As you can see, most of the claims categories have an average rebate of 40-60% of the fees charged for the treatment.
|Type of Claim||Number of Services||Average Benefit per service||Average % of fees covered|
|Acupuncture / Acupressure||414,749||$26.71||43%|
|Preventative Health Products/Health Management Program||171,980||$47.28||48%|
|Prostheses, Aids and Appliances||99,881||$146.61||53%|
|Hearing Aids and Audiology||17,592||$572.72||26%|
|Travel and Accommodation||10,088||$54.30||60%|
|Ex gratia Payments||3,205||$94.11||61%|
|Orthoptics (Eye Therapy)||1,285||$62.24||31%|
|Community, Home, District Nursing||1,247||$ 46.97||73%|
|Accidental Death / Funeral Expenses||908||$1,000.71||13%|
Source: APRA Private Health Insurance Quarterly Statistics – June 2016
The most covered types of claims (lowest out of pocket expenses)
The extras claims which pay out the most, in terms of percentage of fees covered by benefits, include ambulance and community nursing claims, according to the APRA statistics. In the June 2016 quarter, around 100 per cent of the ambulance fees were covered by extras benefit payments. On average, benefits covered 73% of community nursing costs. These claims had the lowest out of pocket expenses.
The least covered types of claims (highest out of pocket expenses)
And the least? Well, according to the APRA statistics, that would be accidental death/funeral expenses and hearing aids and audiology claims. On average, benefit payments only covered 13 percent of accidental death/funeral expenses. 26 percent of the costs for hearing aids and audiology were covered by benefits. On that basis we can say that these claims have the highest out of pocket expenses.
Compare for outstanding value cover
Choosing an extras insurance policy is about making sure you have great value cover for the things that you actually need. Canstar helps to make that easier for you; you can compare extras health insurance policies using our expert ratings. Find a policy for you by viewing features and inclusions here.
Sponsored products are paid advertisements and do not include all providers. Canstar receives a fee for referring you to the advertiser. Canstar is not giving you advice in relation to sponsored products. See How We Get Paid for further information. If you decide to apply for health insurance, you will deal directly with an insurance provider, and not with Canstar.
Consider the provider’s detailed product and pricing information before making a decision to purchase a policy. The products displayed on this page do not include all providers and may not compare all features relevant to you. View the Canstar Health Insurance Star Ratings Methodology and Report. The rating shown is only one factor to take into account when considering products.