It’s time for a check-up on health insurance premiums ahead of the latest policy rise on April 1. Picture: Supplied. Source: Getty Images
PRIVATE health insurance customers are being urged to review their cover following the latest hike which will see rise premiums by up to four times the inflation rate.
The latest gouge set to hit households will see premiums rise anywhere between 3.98 and 7.92 per cent, or by an average of 6.18 per cent.
Australians are being urged to review their private health insurance premiums following the latest hike of more than six per cent to policies. Picture: Thinkstock. Source: Supplied
The rise — the second biggest premium hike in a decade — will come into force from April 1 and has prompted an attack by consumer network One Big Switch to help customers snare themselves cheaper policies.
MORE: How much will your health insurance premium rise?
The campaign — launched today in partnership with News Corp Australia — aims to unlock a group-discounted health insurance deal.
It urges consumers to sign up and demand better policy prices, as this latest increase is set to add about $282 a year to a typical family policy.
The 75 per cent jump in premiums over the past decade — about two-and-a-half times inflation over the same period — is hitting households hard.
Health insurance premiums and gas prices will be the biggest drains on Australian pockets and OBS spokesman Joel Gibson said it was “no surprise” Australians were dropping their cover.
“As soon as people get the information from their fund on how much their premiums will go up they should have April 1 in mind as their deadline for shopping around,’’ he said.
“We’re thinking 2015 will be the year when thousands of people who haven’t switched their health insurance will be forced to do so.”
Disability pensioner Barbara Latham, 61, from Brighton in Melbourne’s south said she struggles to make ends meet each week and the hike to health insurance is the latest blow to her budget.
“I pay about $178 per month in health insurance, I have full cover but now I’m going to have to tap into my superannuation to afford the increase,’’ she said.
“I live on my credit card just to pay bills, I can’t afford this.”
OBS is hoping 40,000 people will sign up to the campaign and result in a better deal being rolled out by a health fund with an offer too good to refuse.
Private Health Insurance Administration Council’s chief executive officer Shaun Gath said jumping insurers was a relatively simple process.
Private Health Insurance Administration Council chief executive officer Shaun Gath said customers can switch insurers without having to serve out waiting periods if they sign up to “like for like cover.” Picture: News Corp Australia. Source: News Limited
“You can move from one insurer to another in a relatively seamless way because the law allows portability,’’ he said.
“Provided you are moving like-for-like cover you can go from one insurer to another without having to reserve waiting periods.”
The campaign is free to join and there is no obligation to take the offer.
For more details about the Big Health Insurance Switch campaign visit www.moneysaverhq.com.au. News Corp Australia and One Big Switch will earn a commission from people who accept an offer.
Originally published as It’s time to fight back on health cover