Tell us: Are we Over-50s getting larger-than-average Premium Increases?
I’ve been waiting excitedly by my letterbox for notification from my health fund detailing my new premium cost (said no-one ever!) So it was with considerable trepidation that I opened the envelope when it arrived this week. My premium is increasing by 5.45%, considerably more than the 3.95% agreed to by Federal Health Minister Greg Hunt. But I’m not on my Pat Malone.
Despite the promise that everyone pays the same price for the same product in private health insurance, we believe that over 50’s generally will experience higher premiums increases than our younger counterparts.
We’ve seen it year after year, because over-50s generally take out the policies that are getting the biggest price rises.
One 79-year-old Queensland member was hit with a whopping 14.7% increase last year! So we’d like to hear from members again this year:
Click here to tell us your 2018 health premium increase.
Click here to shop around using the Club’s special offer with HCF, closing soon
We suspect that nothing much has changed from last year’s poll where you told us:
- 65% of you 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 funds risk pushing over-50s out of private health care at a time when they need it most but there are some things you can do.
Here are a few ideas we’ve shared with members in the past:
Increase your excess: As with most insurances, you can often cut your premium by increasing your Excess. For Health Insurance, “an excess is an amount that you agree to pay towards the cost of hospital treatment, in exchange for lower premium costs”. The maximum excess allowed by the Federal Government is currently $1000 for families and $500 for singles.
Ask about contribution groups: You don’t need to be part of a business to enjoy the benefit of a ‘corporate discount’. There’s actually a very handy loophole in Health Insurance regulation that says Health Funds can offer “contribution group” discounts of up to 12% off the standard premium to defined groups of people, such as employees of a company or motoring club or other organisations.
Pay annually, by direct debit: If you pay annually before April 1, when all health funds raise their Premiums, you pay the old price for the coming year and you effectively postpone the price rise for 12 months. While it’s not an option for everyone, it is worth considering.
If you have private health cover but you need surgery, be proactive and call your health fund BEFORE you have the surgery. It could save you thousands.
The Club has over 300,000 members, so we are able to negotiate a members' offer on Health Insurance with HCF, the country's biggest not-for-profit Health Fund.
Take a look if you haven’t already – only weeks to go before the April 1 deadline.
