Did you know that Australia health insurers paid out $500 million less in hospital and extras benefits over 2019-20? So why are our premiums higher than ever?
Even the ACCC is urging health funds to help their members save on their premiums. So if your insurer isn’t passing on cost savings, it could be time to switch.
2020 has been a difficult year and that extended to our general health. From cancelled elective surgery backlogs to many of us – especially in Victoria – simply unable to leave the house to visit the dentist, we’ve just not been able to use our health insurance as we’d expect.
That’s resulted in $500m of benefit savings for health funds, according to the Australian Competition and Consumer Commission (ACCC)**. Yet members are still being hit in the pocket as most insurers raised their premiums in October 2020 and again in April 2021.
Now the government body is warning health funds to pass those costs savings onto their customers, saying: “The ACCC expects insurers to act on the public commitments to return profits gained from COVID-19 restrictions to policyholders.“
Has your health fund started to pass on those savings? If not, it might be time to make a switch.
Cut your health insurance costs not your cover
This doesn’t mean ditching your health cover, especially if you need an operation. The effects of the COVID shutdown means there’s still a massive elective surgery backlog in public hospitals, so having private health cover means you should get seen quicker.
That’s why it pays to shop around. In 2020, people who compared and switched with Health Insurance Comparison saved, on average, $312*.
So if your current health fund isn’t providing you with any extra value, it’s up to you to find an insurer who will. Get started with Health Insurance Comparison today.
Get Started Now:
Step 1: Select your state below .
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.
*Average saving based on 25,311 customers in 2020.
**ACCC, Private Health Insurance Report To The Australian Senate, 17 December 2020.
Your Life Choices, Health Funds Pay Out $500m less, December 2020.
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.