Health insurance shake-up 1:24
A new alliance of small health insurers is teaming up to take on the big two they say are dominating the market
- TEN
- 02 Feb 2015
- News
MANY Queenslanders are getting a crook deal on private health insurance.
Residents of the Sunshine State face among the highest premiums in the country, new research reveals.
Prices between companies vary greatly, with the difference between the best and worst deals adding more than $1000 a year to the cost.
Families already battling rising cost of living pressures are set to take another hit, with the price of private hospital and health insurance set to soar from April.
Premiums are expected to rise by 6 to 7 per cent, adding about $300 a year to the bill for an average family with a hospital plus extras package. But analysis by consumer research and ratings service Canstar shows Queenslanders are already feeling the pain.
The average premium for a single person with top hospital cover in Queensland is $1699. Only Victoria is slightly higher at $1701, while those in NSW pay just $1567.
For families with top hospital cover, the average annual premium in Queensland is $3659, with Victoria on $3702 and NSW $3398.
Canstar says premiums vary around the country based on demographics and the cost of treatment in each state.
Is it time for an insurance health check? 2:03
David Koch explains how you could save money by keeping your policy up to date.
- news.com.au
- 12 Nov 2014
- Lifestyle/Money Saver HQ
“An increase in health insurance premiums would obviously have an impact on already-stretched household budgets,’’ Canstar spokesman Simon Downes said.
An earlier survey found that after power bills, health and medical payments are the greatest financial concern for Queenslanders.
One in six is worried about the cost – more than petrol (13 per cent) and food (11 per cent).
“Any increase in costs will naturally leave families considering their options,’’ Mr Downes said.
“The need to shop around for the best-value health cover has never been so important.’’
There are savings to be found. Canstar researchers discovered the cost of comparable cover can vary by as much as 195 per cent between providers.
Research manager Mitchell Watson said consumers should carefully compare packages offered and ensure they were taking out the right level of cover for their circumstances and stage of life.
But he warned people not to be seduced into switching by short-term incentives.
Sign-up offers currently available include everything from one month’s free cover to discounted gym memberships, tattoo or hair removal and $50 Westfield gift cards.
“It’s more important that people make sure the policy meets their needs and offers good value for money,’’ Mr Watson said.
The Federal Government can veto any private health insurance increases it deems inappropriate but has indicated it is unlikely to do so.
The Australian Medical Association has also warned that a four-year government freeze on Medicare rebates for specialist treatment will create $1000 out-of-pocket fees for surgery.
Originally published as Health insurance a pain in the back pocket