How mums can bounce back from recent health insurance price increases
Health insurance premiums rose last month (April 2018) which means that anyone currently on an insurance policy in Australia will have been hit by a price increase at 3.95% on average.
And with family policies being hit the hardest, it’s not ideal for many policyholders. In fact, the government estimates that it could be costing families around $143 extra each year. So clearly now is an important time to learn the ins and outs of avoiding increases like this so you know how to dodge it next time around.
Pay your premium annually
There are a couple of ways to avoid the price hike and one of the most effective ones is to pay for your whole year upfront. This means paying for 12 month’s worth of insurance before 1 April, instead of paying a smaller percentage each month. This way, you avoid the increase for the next year and pay for your premium at the previous year’s rate.
Switch health funds
All health insurers have options available for families, but some may be stronger or better for your situation than others. Look at where your insurer is sitting in the market. If your fund has constantly had massive premium increases every year then it might be a good idea to change (you can have a look at historical insurance premium increases here).
Switch policies
This is a big one for parents who have recently had kids. If you took out health insurance for your pregnancy but have decided you don’t want any more kids, then it’s a good idea to drop back down to a level of cover without pregnancy included. Similarly if you’re planning on getting pregnant then make sure you have the right insurance to cater to your needs (do you want to pick your hospital and specialist?). Switching policies is all about taking a look at your needs and assessing whether they’re being covered by your policy. Making sure your cover suits your needs is a good way to save money.
Get value out of your existing policy
If you really aren’t keen on changing policies or insurers then that’s fine. Instead make sure you’re getting the best possible value out of your current policy. Look at whether you’re using your extras and make sure you’re getting the best bang for your buck. If you haven’t used all of your dental cover for the year, then maybe it’s time for a check up. Research shows that half of all policyholders could be missing out on reimbursements for trips to the dentist, physiotherapy or chiropractor appointments and even massages.
And like I mentioned before, don’t be afraid to drop down to a lower level of cover if you aren’t using your current policy. It’s important not to want to wait until the last minute and miss out on an opportunity to save money.
Bessie Hassan is an insurance expert at finder.com.au and a mother of two.