Compare
Health Insurance
Use the moneytime comparison engine to find the right health insurance for you
Related Links
Participating Health Funds
 |
 |
 |
 |
 |
|
 |
 |
Tips to save on health insurance
Health insurance provides important medical protection for you and your family, but do you know how to get the best value for your health cover?
Here are some keys to getting great health cover at a great price.
1. Compare quotes to get the best price
When you're looking for private health insurance, it makes sense to ensure that you get cover for the things you need at a reasonable price. Health insurance jargon can be confusing, so it's tempting to either procrastinate or just pick one at random that fits into your budget. But you can get health cover that fits both your budget and your lifestyle – it's just a matter of knowing where to look.
To compare health covers at a glance and see exactly what's covered by different plans, try a health insurance comparison site like moneytime.com.au. All the hard work and research is done, so all you have to do is pick the plan that suits you. You can get suitable quotes from a number of leading Australian health funds instantly, and with moneytime's easy-to-read comparison table, you can see exactly what you get for your money.
2. Start early in life to lock in a low rate
No matter what your age, if you're eligible for Medicare, you'll receive a minimum 30% rebate from the government on the cost of your health insurance. But if you join hospital cover before 1st July following your 31st birthday, you are also eligible to lock in the lowest premium for life, with a Lifetime Health Cover age of 30. Anyone who joins after that age has a 2% age loading added for every year that they delay taking out hospital cover. For example, someone who joins at 35 years old will pay 10% more someone who joins at 30.
If you joined after 30 and pay an age loading on your health insurance, after ten years of continual cover, you will be rewarded by the removal of the loading and a Lifetime Health Cover Age of 30 – no matter what your actual age. It pays to get insured early – in the long run, you'll save money.
3. Use an excess or co-payment option to lower your premium
Excess and Co-payment options reduce your health insurance premium because you receive a lower rate in exchange for agreeing to pay an out-of-pocket sum if you are admitted to hospital.
An Excess is a sum paid when you go to hospital, regardless of the length of stay. A Co-payment is a daily sum paid when you go to hospital, up to an agreed amount. For example, if Tom has an Excess of $200 on his health insurance and is admitted to hospital for some reason, regardless of his length of stay, he will pay $200 of the final bill. If Tom has a $50x4 Co-payment arrangement, he would pay $50 each day for the first four days of his stay.
If you're fit and healthy and not likely to visit hospital, then Excess and Co-payment options are ideal for reducing your premium. Just keep in mind that in order to avoid the Medicare Levy Surcharge, individuals may not choose an Excess greater than $500 and couples/families may not choose an Excess greater than $1000.
4. Pay in advance before the premium rises
Every year around the beginning of April, Health Funds around Australia increase their premiums with the approval of the Minister for Health. This is to ensure that Health Funds are able to fulfill their obligations to their members, in the face of rising 'medical inflation'.
Premium prices can be expected to increase by approximately 5% each year. To save on the increase, pay the year in advance just before the premium rises to lock in the previous year's rate for the next 12 months.
5. Use providers affiliated with your health fund
Generally, all health funds have 'preferred providers', who have special arrangements with your health fund in the provision of their services, eg. dental, optical, etc. These arrangements can include special rates or 'no gap' cover, to reduce or eliminate any out-of-pocket expenses.
6. Consider different health funds for your hospital and extras cover
If you're planning to get hospital cover and extras cover, why not do a bit of extra digging and check out hospital covers and extras covers separately, to see if you can mix and match your own cover from different health funds, to suit your specific needs? It does mean a little more work, but the difference could be worth it – you could find that the type of hospital cover you want is more cost-effective with one fund, and the extras cover you want is better with another.
It's easy to compare health insurance quotes from a number of leading funds with moneytime.com.au. Go online today and see how much you can save.
7. Check your cover before you get a procedure done
If you're going to a private hospital for a medical procedure, first check that the hospital has an agreement with your health fund to ensure that you're covered. Most health funds have comprehensive lists of agreement private hospitals, but it always helps to double check.
Also, check with your hospital, specialist and or anaesthetist whether there is a 'gap' between their charge and the Government Schedule Fee. Medicare pays 75% of the Government Schedule Fee and your health fund pays the remaining 25%. If your procedure costs more than Government Schedule Fee and you don't have a 'no gap' plan, you could be in for a hefty bill. A quick phone call beforehand can help you avoid this possibility.
9. Take out multiple policies with the same insurer
If you're thinking of taking out a number of different insurance options – eg. car, house or travel – it's worth taking them out with the same insurer. Oftentimes, your chosen health fund is part of an insurance company with other covers available, and taking out more than one policy often gives you a percentage discount on your premium. Also, it's easier to keep track of all your policies and process claims when you're with one insurer that you can trust.
10. Going overseas? Suspend your membership
If you're planning to go overseas for any length of time greater than a few weeks but less than two years, some health funds allow you to suspend your membership for that period, so you don't have to pay the premium while you're overseas. During your suspension period, your Lifetime Health Cover is not affected so you will not have any age loading added on your return. Generally, at the end of your suspension period you can easily re-start your membership without additional waiting periods, but you must check this with your health fund, as situations may differ. Also, keep in mind that Australia has reciprocal arrangements with the UK, New Zealand, Italy, Malta, Ireland, Finland, the Netherlands and Sweden – for more information see www.smartraveller.gov.au.