As the health insurance price hike draws close, a comparison website has issued tips on how Australian health fund members can save money.
A finder.com.au survey of more than 1,200 policyholders revealed that 60%, or 8.1 million people, have made the move to cut the price of their health insurance policy; while 81%, or nearly 11 million people, said they don't plan on pre-paying their premium before April 1 as a way to beat the price rise.
Bessie Hassan, insurance expert at finder.com.au, said the findings prove that the cost of insurance was a major concern for Australians.
“Many members will be asking themselves whether their policy is worth it,” Hassan said. “It’s a huge financial outlay for many households and many cannot afford to absorb an extra $200 in premiums every year.”
Hassan said there are ways, however, to reduce insurance costs while maintaining the same level of cover, “including locking-in 2017 prices by paying the annual premium up front before April 1,” which “can save health fund members $100-$200 on average” – that's almost $1.5bn in collective savings.
“Plus many insurers offer addition 2-4% discounts for paying 12 months up front,” Hassan said.
The research found that paying a year’s worth of premiums upfront is more popular with men (21%) than women (17%); while only one in ten health insurance policyholders (9%) regularly switch funds to get the best-value policy.
“Now is the time to review your policy and make sure it’s right for you at this point in your life,” Hassan said. “Ask for a 12-month claim history from your health fund, and think about what you’re likely to use the same inclusions in the next year.”
Here are some other ways to save on health insurance:
