Australians looking to beat the health insurance price hikes by pre-paying next year's policy have just days to act, with some insurers requiring payment well before the 1 April deadline.
Most insurers allow customers to pre-pay their health insurance up to 12 months in advance, at today’s prices, with funds such as HCF and HBF offering up to 18 months’ prepayment.
Three of the big five insurers require BPAY payments by 26 March while some smaller insurers have even earlier deadlines of 25 March–just two days away.
Deadlines to pre-pay annual health insurance premiums: big five | |||
|---|---|---|---|
Direct debit | Credit / debit card | BPAY | |
Medibank | 31 March | 31 March | 26 March |
Bupa | 31 March (3pm AEDT) | 31 March | 26 March |
HCF | 27 March | 31 March | 28 March |
nib | 27 March | 31 March | 27 March |
HBF | 26 March | 31 March | 26 March |
Source: Canstar.com.au. Each funds’ confirmed payment preference dates. Note: credit card purchases via BPAY may have different cut off dates.
Policyholders still planning to pre-pay the next 12-18 months in advance should check the deadline with their insurer. Some require customers to call them first, while others have time-of-day cutoffs.
Importantly, pre-paying won’t lock customers in. People can still switch insurers during the year. Any unused portion of a pre-paid premium should be refunded by the old fund.
Whether customers should pre-pay their health insurance will come down to:
- whether they have the money at their disposal;
- what the alternatives for this money might be; and
- how much their health insurance price hike is.
While the government has approved an average premium increase of 4.41%, steep jumps are not uncommon. Canstar analysis shows last year, individual gold policies rose by an average of 11.6%, far exceeding the 3.73% approved average increase.
How else to beat the price hike
- Switch insurers: Canstar’s research shows someone switching from an average-priced silver hospital policy to the lowest priced one could potentially save $242 without having to downgrade their cover. (Based on 2025 prices).
- Negotiate: Many insurers offer new customer incentives of up to 12 weeks free. Even as an existing customer you can use these marketing deals as ammunition to negotiate your own discount.
- Pay by direct debit: Almost half (47%) of the insurers on Canstar will give you a discount for paying by direct debit. Just be sure to read the fine print, as conditions may apply.
- Consider increasing excess: Opting for a higher excess can reduce your premium, however, to avoid the Medicare Levy Surcharge, your cover cannot have an excess over $750 ($1.5k for couples).
- Review your cover: Check you’re not overpaying for benefits you don’t use, or missing cover you need. Note: anyone who needs to upgrade cover again will have to re-serve waiting periods.
Canstar’s data insights director, Sally Tindall, says, “With the April 1 price hike looming, anyone looking to pre-pay to beat the increase has a very limited time to act.”
“If you wait until 31 March to decide, the decision might well be made for you, particularly if you’re wedded to paying by BPAY or direct debit. In fact, some insurers need you to transfer the money as early as March 25.
“Pre-paying can potentially be a great opportunity to avoid the premium increase, but don’t automatically assume that’s the case. It will depend on how much your policy is going up by, if you’ve got the cash at the ready and whether that money might be better off elsewhere. This will vary from person-to-person.
“While the average increase is 4.41 per cent, some customers, particularly those on gold-tier plans, could see double-digit jumps.
“If you are committed to prepaying, it’s worth checking you’re on a competitively priced plan, because in some cases, switching might generate even greater savings – especially if you’re then able to prepay with the new insurer.
“However, know that paying a year in advance doesn't lock you in to your insurer. If you do decide to switch later this year, your old fund should refund any unused portion.”
