Last Updated on March 19, 2021 by admin
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Every year on or around April 1, the Federal Government announces an annual price increase in private health insurance premiums, but you don’t have to pay the extra.
You can skip the increase by using a comparison site, locking in your premium or negotiating a deal.
Shopping around for a better deal is a good place to start as you could find a better price and a better policy.
AVOID PAYING THE PRICE HIKE
Use an online comparison site to get quotes for different policies in the same category and with similar extras to see if you can save.
This year, private health insurance is set to rise by an average of 2.74 per cent, which will cost the average Australian family $127 and the average individual $59. But that’s just an average, which means that funds may opt to go higher than that. For example, Bupa has announced an average increase of 3.21 per cent, Medibank 3.25 per cent and NIB a whopping 4.36 per cent.
AVOID PAYING THE PRICE HIKE
And don’t forget that if you do decide to switch providers, you can take any served waiting periods from an equivalent or lower level of hospital cover with you and might also be able to take advantage of any special offers for new customers.
AVOID PAYING THE PRICE HIKE
If you’re really happy with your current health insurer, inquire as to whether they will allow you to pay 12 months upfront at your current rate.
This tactic is often referred to as ‘locking in your premium’ and if you can afford it, you should consider it. Not all insurers allow it, but it’s worth the ask. Just remember that the payment must be cleared by the bank before April 1, or even a few days earlier for some insurers.
AVOID PAYING THE PRICE HIKE
FAQs: PRIVATE HEALTH INSURANCE
Why does the price of health insurance go up?
To cover the rising cost of health care (for example, medical staff wages, surgery, technology and devices) health insurance funds change their premiums accordingly.
Will the price of private health insurance go up in 2021?
Private health insurance premiums will rise in 2021, kicking in on April 1 at an average rate of 2.74 per cent.
What is the cheapest private health insurance?
Basic hospital policies with no extras are often the cheapest, although they provide minimal, if any, cover.
AVOID PAYING THE PRICE HIKE
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