How to stop 2020’s delayed health insurance premium increase hitting your finances

Health insurance premiums are set to increase in October. Make sure your finances aren’t hit by the delayed annual price hike.

It has been a pretty miserable year, financially, for many of us and now private health insurers are set to impose another unwanted premium price hike on struggling Aussies.

In an unprecedented move, private health funds are preparing to raise their premiums by an average of 2.92 per cent this October.

The little-publicised rate rise, which normally comes in April but was deferred due to COVID-19, will likely catch many Australians unaware.

In basic terms, this means a single person will pay an average of $35.36 extra per year and a family will pay, on average, $103.48 more annually*.

But that’s not the whole story.

The average rate rise figures above are conservative.

Back in April, some insurers planned on raising their average premiums by as much as 5.63 per cent*. And as that’s the average across their policies – you could be hit by an even heavier price increase.

This is why switching and saving before October is a smart way to avoid getting hit with extra costs.

You can use a free service like Health Insurance Comparison to do this. Last year, they saved their customers, on average, $380.79^ when they switched and saved.

How much does loyalty to your health insurer cost you?

You’re likely to be substantially paying over the odds if, like many Aussies, you’ve not switched health cover in the past few years.

Five years ago, for example, the average family who compared with Health Insurance Comparison was paying $4268.90.

If that same family hadn’t switched and were hit with the average annual rate rise every year, they’d be paying $5219.09 on the same policy by the end of this year.

That’s an extra $950.19 in premiums over five years.

It’s why regularly comparing policies can keep your health insurance costs down. You can join thousands of smart Aussies in paying less for your premium when you compare and switch with Health Insurance Comparison.

In just a few clicks you can get options that fit your needs and cut your costs.

It’s easy to get a better deal

Whether COVID-19 has hit your finances or you’ve been lucky enough to keep your income at a steady level, there’s still no reason to be overpaying for your health insurance.

Rather than spend hours trawling through health fund websites, you can head straight to Health Insurance Comparison to find the cover you deserve at a price you can afford.

Finally, it’s not just about getting the cheapest deal.

Health Insurance Comparison’s experts specialise in finding the parts of your policy where you could be overpaying and the extras where you could be getting more back in rebates. It means you’re making your policies work for you, rather than the other way round.

For example, some people may be able to trim items like pregnancy and IVF off their hospital cover and then switch to an extras policy that gives them more back on your annual dentist visit.

What can I do about it?

The first step is to fill out your details with Health Insurance Comparison. You’ll be able to compare similar policies and see exactly what you could be saving.

Best of all, comparing is completely free and there’s no obligation to purchase at the end of it. So, are you ready to see how much you could be saving?

This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.

*Department of Health, Average annual premium price change by insurer, March 2020 (https://www1.health.gov.au/internet/main/publishing.nsf/Content/privatehealth-average-premium-round)

^Based on 20,400 Health Insurance Comparison customers in 2019.