Why we’re jumping up and down about Health Insurance premiums
The picture you see here has popped up in my local area and over-50s will know it as a line from a famous Janis Joplin song. It really does demonstrate the disparity between first and third world countries.
I always feel so lucky to live in a suburb that boasts a couple of great hospitals within 10 minutes from my house. Some Aussies living in regional areas are dangerously distant from medical attention if they need it… but on the whole we’re lucky.
But a good health system costs a lot, and the cost is starting to bite all of us.
Health premiums are now a political BBQ-stopper, but don’t rely on the pollies: here are our tips for saving some money.
The Medicare Levy pays for the public system and we all have the right to use it for free.
Private health insurance is partly paid for by the Federal government, via $6.5bn in rebates, and the rest is paid for by you and I in the form of premiums.
The federal government has a say each year on premium increases when funds submit their proposed increases annually.
This year, Greg Hunt’s Coalition government approved an increase of 3.95%, the lowest increase in 17 years but well ahead of wage growth.
As we revealed last week, some funds aren’t adhering to the government’s 3.95% and many over-50s will pay substantially more. (One Queensland member told us last year their increase was 14.7%!)
This week the Federal Opposition leader Bill Shorten weighed in saying that if elected, he would cap these increases to 2% annually for two years and he immediately drew the ire of both medicos and health funds.
We’ll believe it when we see it. Many of you want the government to do more to reign in premiums according to the latest Guardian Essential Poll. 83% of respondents agreed the government needed to do more to keep it affordable, and should limit the profits insurers make if they increase fees for policyholders. 60% agreed with the statement that health insurance wasn’t worth the premiums.
Even more alarming, Bessie Hassan from Finder.com.au predicted health costs would be 20% of Australian household budgets by 2051.
While many families are choosing to opt out of private health insurance and take their chances in the public system, this isn’t always an option for over-50s who feel they can’t afford not to have it.
Yes, you can access public hospital treatment, but maybe not in a timeframe that works for you.
The next best thing is to try and get the best value you can from your cover.
The government run privatehealth.gov.au site has plenty of information but does not answer individual questions, and with Health Insurance many of us feel we need a hand shopping around.
That’s why the Club has teamed up with a comparison service called HealthInsuranceComparison.com.au* that targets older policyholders and saved 100 older customers an average of $375^ on their premium last year.
There are members-only offers on health insurance with HCF, Australia’s biggest not-for-profit fund, which are not generally available to others.
In short it does take a little work but given the cost of an average family’s cover can be around $4000 a year, it’s worth making the effort.
And we are here to give you as much help as we can.
Click here to use the HealthInsuranceComparison.com.au* service
Click here to see the members’ offer with HCF
* FiftyUp Club may receive a payment for any Health Insurance policy acquired through HealthInsuranceComparison.
^ Savings figure is based on data from 100 customers of Choosewell/HealthInsuranceComparison.com.au, analysis conducted Jan-Mar 2016.
