Soaring health premiums cause thousands to raid super

Have you ever considered dipping into your Superannuation? I know I did once when I was made redundant from my job and was struggling with the mortgage. I found out it’s very tough to dip in Super - and so it should be. 

But 15,000 of us tapped it last year to pay for medical procedures such as weight loss surgery, at a time when thousands of us are dropping private health cover due to soaring premiums.

Financial Services Minister Kelly O’Dwyer said this week that Australians should only be allowed early access to their superannuation if “they’re suffering from severe financial hardship or from a serious medical condition.” 

(By the way, the Fiftyup Club's special members-only Health Insurance offer closes at midnight tonight. Don't miss out!)

The debate in the media has been around whether weight loss surgery is considered a “serious medical condition.” Given that obesity can dramatically shorten ones’ life, doesn’t it stand to reason that if the surgery extends life, those patients will need their Super?

Make no mistake though, at the heart of this issue is Private Health Insurance. Federal Health Minister Greg Hunt is reviewing out-of-pocket expenses which have long been a thorn in the side of Aussies with Private Health Cover and one of the major reasons those same people are opting out of private cover in droves.

The Australian Medical Association argues that most doctors charge “appropriately and responsibly,” why then are we getting push-back from medico’s when it comes to publishing their fees for patients?

Speaking on Macquarie Media this week, Leanne Wells from The Consumers Health Forum has also said the surge in superannuation payments for medical treatment is a consequence of high out-of-pocket expenses and waiting lists.

In Australia, out-of-pocket costs account for about 20 per cent of all healthcare expenditure, higher than in similar countries.

Ben Marshan, head of policy and government relations at the Financial Planning Association of Australia, warned that people needed to understand the significant financial impact of accessing their superannuation early to pay for a medical procedure.

He said that for a person in their 40s, ­accessing $10,000 today to pay for a medical bill would cost them more than $42,000 in retirement savings over 20 years. For a person in their 30s, a $10,000 withdrawal of superannuation funds would reduce their retirement savings by about $180,000.

In less than 3 months, private health insurance premiums will rise again. It’s not if but when…April 1^st to be exact.

If you’re a rusted on, loyal private insurance customer who wants to hold onto your insurance, make sure you’re getting the most out of it:

1. Try a comparison website to see if you’re paying too much. Sites such as HealthInsuranceComparison.com.au, that targets older policyholders, claimed it saved 100 older customers an average of $375^ on their premium last year.
2. Those willing to opt for a higher excess limit in a bid to lower their premium would also able to do that under the reforms.
3. Make sure you’re not paying for cover you don’t need such as pregnancy.

Research from Morgan Stanley in October last year found that 48 per cent of people were likely to switch providers this year, compared to 41 per cent in 2016.

The reason a consumer organisation such as FiftyUp Club has accrued more than 300,000 members in four years is because you want to be heard. Australia’s most loyal customers, the over 50’s are sick of not being rewarded for their long service.

Until midnight tonight, we’re offering our members $400 cashback – paid over 37 months of membership^ – for families, couples, and single parent families who switch hospital and extras cover to HCF. Singles who switch hospital and extras cover to HCF get up to $200 cashback paid over 37 months of membership.

CLICK HERE TO SEE THE OFFER BEFORE IT CLOSES TONIGHT

Special Health Insurance Offer 

As a FiftyUp Club member, you can enjoy the members offers we make available and unlock, if you decide it is right for you. FiftyUp Club are able to unlock additional special offers from time to time. FiftyUp Club special offers are available for a limited time. Check the FiftyUp Club website for further information about our member and special offers.

^If you take the members offer and remain with HCF, you may be eligible to receive up to $400. FiftyUp Club will pay by way of electronic funds transfer (EFT) $100 to eligible couples and families after 3 months, 13 months and 25 months and 37 months (instalments for half these amounts will be made to singles). To be eligible to receive each instalment of cashback you must be a current member of HCF with hospital and extras cover at the point of expected instalment.

If you already have health insurance, switching to HCF is easy. HCF will contact your former health fund for you. Plus, you’ll have no additional waiting periods for services with an equivalent level of cover (excluding hearing aids). Offer is for switchers only and excludes existing HCF customers. If you take up the offer and you are not already a member of FiftyUp Club, you will become a member upon taking up the offer. HCF will recognise waiting periods you've already served with your current fund. Some longer waiting periods and conditions apply. Any benefit limits used with your current fund will apply to your new HCF policy. Offer cannot be used in conjunction with any other corporate offer or discount. Offer available until 12 January 2018.

Cashback instalments will be paid by EFT only, to the bank account nominated by you; no cheques will be sent to members. To receive payment as a new or existing member, you must provide and must ensure that your nominated bank account details are provided correctly to FiftyUp Club. You should do so here. The right to the cashback benefit will lapse after 12 months of the date you become entitled to it if you have not provided correct bank account details and as a result we have been unable to complete the payment.

**If you’ve switched from another health fund, you may not need to serve waiting periods, if: your HCF cover includes the same benefits and services as your previous cover; and you’ve served the equivalent waiting periods with your previous fund. This excludes hearing aids; a 12 month waiting period will apply from the date you join HCF. You’ll need to have switched from another Australian registered health insurer or an international health insurer belonging to the International Federation of Health Plans, and join within 30 days of ceasing your previous membership. Continuity of previous cover doesn’t apply to loyalty limits for services like hearing aids, dental services (including orthodontic services), physiotherapy, chiropractic, osteopathy and exercise physiology. Any benefit limits used with your current fund will apply to your new HCF policy. Offer cannot be used in conjunction with any other corporate offer or discount.

FiftyUp Club receives a commission for each member who takes up an offer with HCF and remains a member of HCF. FiftyUp Club returns up to $400 of this commission to members in the form of the switcher's bonus/cashback, and shares the remainder with its media partners, which include Macquarie Media Ltd, Nova Entertainment and Nine Network Australia who provide the people power to make our campaigns successful. Part of our commissions will also be used to fund future FiftyUp Club Campaigns.