HEALTH fund members are downgrading their cover, switching
health funds and mums are opting to buy pregnancy cover as a singles policy as
they try to cope with record premium rises.
Health insurance
brokershave been deluged with inquiries from health fund members after Health
Minister Sussan Ley announced a 6.2 per cent average premium rise last month.
A News Corp
investigation has found many health fund members are being slugged with premium
rises nearly three times the 6.2 per cent average
announced by the government, some facing rises of up to 16.9 per
cent.
HCF’s Top Plus
cover increased by 16.9 per cent Medibank’s Blue Ribbon Hospital cover
increased by 11 per cent, BUPA’s Top Hospital with everyday extras rose by 9.2
per cent, the Queensland Consumer’s Association says HCF’s 16.9 per cent
premium rise shows consumers should not assume that their premium is increasing
by the fund average and should work out the percentage themselves.
“Consumers
looking for better value for money should shop around to get the best deal with
their existing fund, or other funds, before or after 1 April,” association
spokesman Ian Jarratt said.
One option for
some consumers is to avoid any increases entirely by paying a year’s premiums
before 1 April, he said.
Even before the
premium rises were announced 2.5 million Australians had dumped or downgraded
their health insurance policies in the two years to December 2014 health fund
lobby group Private Healthcare Australia says.
I Select chief Matt
Cumming says as Australians try to cope with premium rises of up to $282 a year
they are splitting their hospital and extras cover across multiple funds to
meet a given price point.
And
couples are taking out multiple singles policies to meet a given price point.
“For example, a
male will purchase a basic level of hospital cover for tax purposes while the
female will take out a singles policy that covers pregnancy costs without the
male having to pay for that as part of a couples policy,” he said.
Top hospital
cover for couples costs around $381 a month but men can buy basic singles
health cover for as little as $66.50 a month while a top hospital cover package
to cover a pregnant women costs around $190.
Couples who
structured their insurance this way would save $125 a month in premiums.
Another
insurance broker Compare the Market says customers’ first
choice tends to be to increase their excess in order to bring down their
premiums.
“Some customers
are choosing to downgrade their level of cover to save money; typically their
hospital cover (from top to basic) as opposed to their extras cover,” Compare
the Market spokeswoman Abigail Koch said.
“People
seem much more willing this year to switch funds if it means they can pay a
lower premium without compromising their level of cover,” Ms Koch said.
In March last
year iselect received inquiries from 250,000 Australians about their health
insurance, up 50 per cent on the previous year and inquiry volumes are growing
again, Mr Cumming said.
Health Minister
Sussan Ley said other health funds were offering average premium increases as
low as 3.98 per cent and the best thing for consumers to do was shop around if
they were unhappy.
“We have a
strong competitive health insurance market in Australia and it’s important
consumers don’t underestimate their buying power if they think they’re being
taken for a ride. The best place to get commission-free comparisons is
www.privatehealth.gov.au.”
Opposition
health spokeswoman Catherine King said under this government “health fund
members have had to endure the two biggest average premium rises in a decade”.
“Both of the
rises so far approved by the Abbott government exceed ANY of the rises approved
under Labor and have cost families in excess of $200,” she said.
News Corp is
supporting the Big Health Insurance Switch campaign
which aims to register 40,000 consumers who want discounted health insurance to
unlock an exclusive offer from a health fund and drive competition in the
industry. The campaign is free to join and has already attracted over 81,000
members.
For more details
visit https://www.onebigswitch.com.au/ and moneysaverhq.com.au. News Corp
Australia and One Big Switch will earn a commission from people who accept an
offer.
For Health Insurance I always prefer to cover the policies which best fit in my conditions. I have seen people paying for the premium and at last when the time comes to get the reward the companies back off and states some kind of policies which restricts them to claim from their rewards. Therefore, whenever going for health insurance one has to read the terms and condition very very carefully.
ReplyDelete