5 March 2010 | moneytime
Each year, private health funds submit new premium rates for approval by the Health Minister, and every year, premiums rise due to the increasing costs of providing health services. The Health Minister, in this case Nicola Roxon, ensures that these increases are in line with the cost pressures faced by the health funds. In the last three years, the rate rise has generally been around 6%. This year is no exception. On 1 April 2010, health insurance premiums will rise by an average of 5.78%.
Many people don't know that there is a way to avoid the rate rise for at least another year. Most health funds allow you to lock in the previous year's rate provided that you pay a year's premium in advance before the rate rise occurs.
Most of moneytime's partner health funds allow the lock in, provided that you join by a certain date:
| Health fund | Lock-in allowed |
| AHM | Yes, until 23rd March |
| Australian Unity | Yes, until 31st March |
| GMHBA | Yes, until 15th March |
| HBA | Yes, until 31st March |
| HCF | Yes, until 31st March |
| MBF | No |
| Mutual Community | Yes, until 31st March |
| NIB | Yes, until 31st March |
Some of our health funds also offer a further discount for choosing to pay by direct debit. These funds are:
| Australian Unity (bank account) | Australian Unity (credit card) | GMHBA (bank account) | GMHBA (credit card) |
NIB (bank account) |
NIB (credit card) | |
| Monthly | 4% | 4% | 2% | n/a | 4% | n/a |
| Quarterly | 4% | 4% | 4% | 2% | 4% | n/a |
| Half-yearly | 4% | 4% | 5% | 2% | 4% | n/a |
| Yearly | 4% | 4% | 5% | 2% | 4% | n/a |
If you happen to choose a health fund that offers both the lock-in and a direct debit discount, you could save over 10% on the cost of your health insurance premium.
Even if the health fund you choose does not make these offers, all our partner health funds have great specials currently available through our website, including the waiving of waiting periods, free cover for a month and even Puma vouchers of up to $300. The specials vary every month, so find out what you could be eligible for by taking out health insurance or switching heatlh funds today.
