Confused about health insurance? You’re not the only one.
Health insurance is a difficult subject to get your head around at the best of times, much less when the industry is facing some significant changes, thanks to a set of reforms that are rolling out.
For this reason, we think it’s the perfect time to explore some common misconceptions about health insurance, including these reforms and the premium rate rise.
Ready? Let’s get mythbusting!
Not necessarily.
On 1 April 2019, it’s entirely possible that your premiums only increased by 3.25%, but don’t forget that this figure is the weighted average increase across all health insurance funds.
This means that there are policies out there that increased by either more or less than this amount.
For this reason, it’s worth reviewing your policy every year before 1 April, to ensure you’re not paying too much – regardless of whether you have a hospital or extras policy.
Not true! If you have an extras policy, the reforms might still affect you.
Sixteen different natural therapies aren’t included on any extras policies following April 1st 2019, including aromatherapy, homeopathy, naturopathy and more. Read our guide to the big changes in health insurance for a complete list of natural therapies that are no longer offered.
In addition, you will soon have the option to opt for a higher excess, which will reduce your premiums. When combined with the reforms designed to place downward pressure on private health insurance rate rises, this means you could save on cover.
2019’s increase is the lowest it’s been in 18 years, at an industry-weighted average of 3.25%.
Actually, the new tier system means every hospital policy will change in some way.
The new tier system for hospital policies (labelled Basic, Bronze, Silver and Gold) will make the process of comparing a lot simpler.
Regardless of which health fund you decide to go with, all policies under a tier will have the same services and treatments. Any policy that has additional cover outside these minimum requirements will have ‘Plus’ or a ‘+’ in its name. So, the ‘Plus’ in a policy called Silver Plus denotes that:
However, once categorised, your policy may fall under a tier that no longer covers essential services you need, or your amended policy might offer services you don’t need, but you are paying for.
For these reasons, it’s important to review your current health insurance policy to see if it’s still suitable for you. Different health funds will roll out these changes at different times. Some will re-categorise their products before April this year, while others will do so up until 2020.
To find out what each policy level will offer, read our handy guide to the seven-tiered health insurance categories.
Saving on health insurance doesn’t need to take too long at all! You can retrieve a quote from our health insurance comparison service in just minutes. After that, you could get a health insurance policy within an hour.
Take Jane, for instance.
She could compare with us online, talk through her options with us, and be covered by a new policy in 45 minutes; that’s the same amount of time as watching an episode of Stranger Things on Netflix!
We’ve helped over four million people like Jane get a great deal on health insurance, so why not see what we have to offer?
From 1 April 2019, younger adults will have a greater incentive to take out health insurance with the age-based discount.
Australians between 18 and 25 who decide to take out health cover can receive a 10% discount on their health insurance premiums.
This discount lowers by two per cent with every year you’re over 25, meaning 29 will be the latest age Australians can take out cover and receive a discount on their health insurance premiums.
| Age | Discount |
| 18-25 | 10% |
| 26 | 8% |
| 27 | 6% |
| 28 | 4% |
| 29 | 2% |
While discounted prices are an excellent incentive to purchase a policy, it certainly isn’t the only reason to get one. Health insurance can have numerous benefits, regardless of age, including:
There might be no out-of-pocket expenses for your next hospital treatment, depending on your coverage, the hospital you’re at and the surgeon/s and anaesthetist fees.
Private health insurance funds generally have a list of partner hospitals they have an agreement with, along with a list of providers that they have the gap cover arrangement with.
So, with a little research, you can find hospitals and providers with a gap cover agreements with your insurer to help reduce any out-of-pocket payments (other than the excess option you choose on your hospital policy, which is payable when you make a claim on a service or treatment).
This is only true for residents in Queensland and Tasmania. Residents in other states and territories who don’t hold government concession cards do need to pay for emergency ambulance services. These fees can cost hundreds – even thousands – of dollars, depending on which state or territory you’re in and how far your ambulance has to travel.
Here’s how other states and territories charge ambulance trips:
| State/territory | Cost of ambulance services |
| New South Wales | $372 + $3.35/km[1] |
| Victoria | $1,204[2] |
| South Australia | $955 + $5.50/km[3] |
| Western Australia | $949[4] |
| Australian Capital Territory | $936 + 12/km travelled outside of ACT[5] |
As you can see, people in these areas who believe ambulance rides are free could end up facing an unpleasant surprise when they receive their bill. Luckily, ambulance cover is available either as a benefit on health insurance policies or through a subscription service.
Find out more about ambulance cover and whether you need it.
You don’t have to be rich to enjoy the benefits of health cover, as it’s for anyone who’s looking for additional flexibility with their hospital care. You can take our quick quiz to see if you need health insurance and how it could benefit you.
This depends on the kind of policy you switch to. If you’ve served waiting periods for treatment or services on your current policy and then switch to the same or lower level of cover, you shouldn’t need to re-sit waiting periods for these benefits.
However, if your new policy has some extra benefits that you didn’t have before, you’ll need to sit any applicable waiting periods before you can claim on them.
There’s never been a better time to review your cover. Thanks to our handy health insurance comparison service, you can view policies from multiple providers in only minutes!
Best of all, retrieving a quote on our website won’t cost you a thing, so you can adjust your search until you find a policy that suits your lifestyle.
If you’d prefer the personal touch, call to talk to one of our experts.
