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NewsOver 55's are being hit by larger-than-average premium increases
Over 55's are being hit by larger-than-average premium increases

Over 55's are being hit by larger-than-average premium increases

Tags: Health Insurance
Last updated by Someone on

New evidence suggests the Over-50s are once again getting bigger premium increases than the general population as the April 1 deadline approaches for Health Insurance price rises. 

The national average increase might be 4.8%, but a new FiftyUp Club poll of 500 people revealed:

  • 65% of us will face a health premium rise greater than 5 per cent
  • 45% are planning on dropping or downgrading their cover, and
  • 60% are “furious” about the latest premium increase

Last week I revealed my mum’s premium had increased by 13% and this week we heard from one 79-year-old Queensland member hit with a whopping 14.7% increase!

“I have tried on 2 occasions to phone them but gave up after 20 mins!” they said.

Click here to see the members’ offer from HCF, or call the hotline for a quote: 1800 345 044

As the April 1 deadline approaches and we all have to dig a little deeper into our pockets to pay for private health insurance, many members have started receiving notification letters from their funds explaining their increase.

Half of Private Health Insurance customers aged over 50 are receiving premium increases over 7% on April 1 – much higher than the 4.8% average announced by the Government.

Last week I revealed my mum’s premium had increased by 13% and this week we hear from one 79-year-old Queensland member hit with a whopping 14.7% increase.

A new FiftyUp Club poll of 500 over-50s revealed:

  • 65% will face a health premium rise greater than 5 per cent
  • 45% are planning on dropping or downgrading their cover, and
  • 60% are “furious” about the latest premium increase

Health premiums are set to rise by an average of 4.84% from April 1, the survey shows older Australians’ health premium prices hikes do not reflect the national average.

Health funds have been notifying their members about premium increases that are much higher than the average increase, and it risks pushing over 50s out of private health care at a time when they need it most.

The latest increase comes as private health coverage is going backwards for the first time in 15 years. Health premiums have risen 71% in a decade, yet the latest increase has been touted as “the lowest annual increase in a decade[1]”.  

Last week’s blog on Health insurance (read here) certainly started a flurry of response from members:

Leonie from QLD offered advice: “Simple...... we’re all over 50 now.... change health insurance companies. “

Annette from VIC says: “I too feel cross about the price hikes but without private cover I would have had to wait months and months before seeing a specialist and then to wait even longer for surgery. There needs to be a better compromise with tax relief for those who pay their own way.” 

  • Click here to see the latest health offer
  • Click here to hear the interview with Dr Ross Walker on how Australians are paying 4 times more for medications than our kiwi neighbours
  • Click here to here about a great health insurance hack that could save you thousands
Originally posted on .

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Over 55's are being hit by larger-than-average premium increases

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Dianne
Dianne from NSW commented:

I've been hit with a 5.29% increase but HCF have also informed me of the good news that they've added "Involuntary Unemployment Assistance" to my cover. Given that I'm retired why would I need that? And how much of my increased premium is paying for something I neither need nor want. I have been with HCF for almost 50 years and haven't made a hospital/medical claim for 30 years - still being penalised though! 

Christine
Christine from QLD commented:

Yes, whose premium is only going up by the stated 4.8%. Can those 2 people stand up, I would like to see what Level of cover they are on. ?? 

Ben
Ben from NSW commented:

We are with BUPA and premium is going from $446 per month to $484 or $38, roughly 8%. So much for 4.8%! BUPA carried on with gobbly gook spiel about average increases, the whole truth is that they have been happy to take my premiums for the last 65 years but now at age where claims will be made and if they can financially force me out they will not have to worry. I just get annoyed when we watch the news and all the cricketers and footballers are running around with BUPA on their shirts and I am paying for them!! 

John
John from NSW commented:

After careful consideration and past experiences, I have decided enough is enough. My premium was going up 10%. Being on the DSP, I had no choice but to cancel my policy. Previously, I have reduced the amount of cover to try and stay within finacial viability. My only claim seems to be for my glasses ($300) each year. I intend to put the money I would have paid, on the old rate, into a seperate bank account and use it to pay my medical bills. It's just plain rude to have premiums going up every year and the benefits dropping... I'm out!!! 

Christine
Christine from QLD commented:

I just worked mine out - a rise of 6.23%. I haven't claimed any hospital cover since 2001, and work part-time so have irregular income. My first action is to drop all extras as I see no reason why any insurer should be able to stipulate which dentist, optometrist etc I go to. I have opened an account in my bank and will dip into that as and when I need it. My second action is to reduce the hospital cover - I am sick of paying for pregnancy and obstetrician cover and other things I simply don't need. The health insurers have no interest in serving their clients - only in making money. We're being taken for idiots. The trouble is that we go through this charade every year, but NOTHING is ever done! 

Someone
Someone from NSW commented:

This is blatant discrimination, I wondered why our health insurance went up around $40 per month instead of around $12...now I know it's because we are 69 and 70! How can they get away with it? 

Christine
Christine from NSW commented:

My premium is being increased by $19.75 per month & is just under 12%. I am 66 years old. When asked why such a large increase I was told some products covered attracted a higher increase. I reviewed my cover approx 2 years ago & got rid of items not applicable to me. I have been with HCF for 40 years! I don't think we have a hope of stopping these increases. Previously the increase has not been too bad. Not happy about this at all. Christine Burton 

Trevor
Trevor from WA commented:

As I have said before, all these companies are the same, they don't care about their existing customers, they care about the people they DON'T have. Simple as that. 

Casey
Casey from VIC commented:

I wasn't inferring that YOU were ... but we certainly were. Only the once, though. 

Peter
Peter from NSW commented:

I was already paid to 3 April 2016 when I decided to pay a yearly premium. They added the cover to my existing period of cover thus putting me into the next year. As for the "extras", we dropped that because we just did not claim anything and when we did claim for my wife's spectacles, they paid $200 for a $900 pair of glasses. Financially, we were better off to put the "extras" premium in the bank and pay out of our own pocket. I believe it is all a waste of money and completely unjustifiable to increase by 5% plus each year. 

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