Health insurance is getting more expensive year after year. Considering the cost, it is a good idea to review this annually to make sure that your policy and insurer are still meeting your needs, and this is not an easy task.
After recently going through this exercise myself, here are the steps I followed:
1) How much are you paying and getting back in claims? I looked at last year’s claims to find out how much I received back from my insurance compared to the price I paid for the insurance.
2) What is the coverage? I reviewed my policy hospital and extras and confirmed if they were still appropriate for me given my life stage. I decided to reduce some of my extras and will look to take them back up again as needed. Just be mindful that you may be subject to waiting periods when you do re-elect.
3) Compare providers. As of April 1, 2019, health insurance products are labelled under the new categories ‘Gold’, ‘Silver’, ‘Bronze’, and ‘Basic. This should make it easier when comparing like to like cover against providers in the market. Some example comparator websites include; www.privatehealth.gov.au, www.canstar.com.au, www.caretocompare.com.au.
I managed to save $700 on my annual premium just by changing to another reputable insurer for the same estimated level of cover. Additionally, speak to your existing insurer and ask to have your policy price reviewed and/or talk to potential future providers directly.
If you are considering dropping your health insurance altogether, then check out this link http://www.health.gov.au/…/about-private-health-insurance. For higher-income earners, you may be required to pay the Medicare levy surcharge and lose the Private Health Insurance Rebate.
So don’t set and forget, instead aim to review your health insurance at least annually to check that your policy meets your current needs as well as being price competitive.
PS: This does not constitute any form of advice and is non-paid referral links provided. For more general information a good site to refer to is www.moneysmart.gov.au/health-insurance#FinancialPlanning