Save yourself money … Private Health Insurance Administration Council CEO Shaun Gath says it’s possible to save. Picture: Gary Ramage Source: News Limited
With comment because I’ve just done this. PRIVATE health cover is about to go up another 6 per cent and the man in charge of scrutinising fund increases says people who don’t shop around “are nuts” because it’s possible to save up to $1500 a year.
A family with the highest level of protection for hospital, dental, optical and other treatment could save $130 a month by seeking out a better deal — without compromising quality of coverage, Shaun Gath, CEO of the Private Health Insurance Administration Council (PHIAC), told News Corp Australia.
“That’s a meaningful amount of money,” Mr Gath said.
FALLOUT: One million families downgraded private health cover after Labor cut rebate
Advice … PHIAC advises the Federal Health Minister, currently Sussan Ley, on annual premium increases requested by funds. Picture: Supplied. Source: News Corp Australia
PHIAC advises the Federal Health Minister on annual premium increases requested by funds. Its advice, which it won’t discuss, is on the desk of new Minister Sussan Ley, with an announcement about this year’s increases expected as soon as this week.
Mr Gath did say he didn’t see a reason why increases would vary much from those in recent years, which have been about 6 per cent.
That is an average across more than 30 funds. Analysis by News Corp Australia reveals the five largest funds five-year increases have, in total, varied from 27 per cent (HBF) to 35 per cent (HCF). That means family policies that were both $3000 in 2010 could now have a $250 price difference.
Shop around … Mr Gath urged consumers to use a free comparison website, privatehealth.gov.au, to check rival offers and save. Picture: Supplied Source: Getty Images
Of the other major funds, NIB has hiked 34 per cent, Medibank 32 per cent and Bupa 31 per cent. The average across 33 funds analysed was 32 per cent over the five years from 2010 to 2014. It means a $3000 policy in 2010 now costs nearly $4000.
With another slug on the way, Mr Gath urged consumers to use a free comparison website, privatehealth.gov.au, to check rival offers.
“Very, very, very few people know about it,” Mr Gath said. “If people aren’t using it they are nuts.
“If they are unhappy with what happens this year, they should shop around,” Mr Gath said.
But many consumers instead cut back on their cover, said Consumer Health Forum CEO Adam Stankevicius.
“It’s because of the convenience,” Mr Stankevicius said.
A majority of policyholders don’t keep a close eye on their coverage, he added. Most only review it every three to five years. It was worthwhile doing it annually, Mr Stankevicius said.
About 12.6 million Australians are covered by six million private health insurance policies.
Wide ranging … About 12.6 million Australians are covered by six million private health insurance policies. Picture: Supplied. Source: Getty Images
Comment
THIS week I changed health funds for the first time. I’d been with my existing insurer for more than a decade. I will save $1400 a year.
I did so after using privatehealth.gov.au. It really helped. I was surprised how easy it was to use, given it’s a government website.
Unlike some private sector comparison services, there are no commissions and every single product is compared.
We have two young children and don’t want to give up coverage for pregnancy just yet. So we know our premiums are going to be high.
But they will be a lot more manageable after using privatehealth.gov.au. I recommend you give it a look.
And, if you’re wondering, I didn’t go to the site at Mr Gath’s urging, and my reason for interviewing him was not based on the saving I had made after using the tool.
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Originally published as Save up to $1500/yr on health cover