Premium Price Rise Way Above Inflation - Time To Compare Health Insurance

Premium Price Rise Way Above Inflation – Time To Compare Health Insurance

We’ve all been hit recently with increased health insurance premiums which are always inevitable (the most recent we have detailed here). However, we all know we will have another premium rate rise coming on 1 April 2023. Why so soon and what can you do about it!? Billy Explores is here to help! NewsCorp recently did an investigation on health cover compare in Australia, so we’re here to break it down for you!

Why Do Premiums Go Up Every Year?

There are a number of reasons that premiums increase every year, and Billy already has a great article and information on that here. Essentially it’s the cost of providing health insurance that means premiums must increase. This includes administration costs of the health funds and also the provision of medical costs (from hospital costs, surgeons, extras etc).

Why It Pays To Do A Private Health Insurance Comparison

Health fund premiums surged by up to 9 per cent this month – three times more than the government’s claimed “average” rise of 2.7 per cent. The News Corp investigation also found some basic and bronze packages cost more than silver and many silver plus packages cost more than gold! Wow – that’s a lot of difference in benefits!

What Is the Most Expensive Health Fund?

The most expensive family policy in the country – Doctors Health Fund Gold – costs an eye-watering $977 per month. That’s a lot of extra cash you have to pay out of your back pocket! But if you shop around and are prepared to pay a very big excess you can get top health cover for almost a third of that price – $357 a month for a family or $178 for a single.

Consumers Health Forum chief executive Elizabeth Deveny said it was “disappointing to see private health insurance premiums rising again, especially when insurers’ revenues have grown and benefits paid to their members have decreased”.

“With the cost of living impacting consumers, many may be forced to reconsider the value they receive from their private health insurance,” said Ms Deveny.

Private Healthcare Australia chief executive Dr Rachel David said the rises “were very carefully vetted by both the Department of Health and the minister”. “There’s no evidence that premiums have increased by any more than inflation in underlying health costs,” Dr David said.

What Is The Cheapest Health Insurance In Australia?

It shows the price difference between the cheapest and most expensive Gold products is up to $327 per month, for Silver Plus products, it is more than $313 per month and for Bronze, it is $61 per month.

Privatehealth.gov.au data shows the cheapest Gold health fund product in the country for families is St Luke’s Health Gold Hospital 1000 which costs just $367.40 per month but it won’t help you escape the Medicare Levy Surcharge. Only its $426 product will.

The most expensive Gold health fund product was Doctor’s Health at $977 per month in Queensland. This fund is only open to doctors and a spokesperson said it was expensive because, unlike other funds, it covered medical bills up to the level of the Australian Medical Association’s recommended fee.

The prize for most expensive family health insurance open to the general public is Suncorp’s Gold Hospital $250/$500 excess which has a price tag of $750 per month in Victoria and $723 in Queensland.

These prices are before any government tax rebates. All health fund policies are different so check whether the policy covers services you require before you switch

Why The Cheapest Health Insurance Is Not Always The Best

Aussies shouldn’t automatically think that the cheapest health insurance is the best for them. There are a lot of factors that contribute to a great private health insurance policy including budget and benefits. However, we’ve got a couple of great articles here and here where you can read more!

How To Do A Private Health Insurance Comparison

Thanks to NewsCorp for its research into the various health funds. So you know now the cheapest and most expensive health funds. It’s time to do a private health insurance comparison through Billy Explores! It’s so quick, easy and FREE to compare health insurance Australia. To get started with your private health insurance comparison today just click below.

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