Are You On a Junk Health Insurance Policy? It’s Time to Change
AMA finds that Aussies are paying for health insurance that doesn’t provide adequate coverage
A revealing report from the Australian Medical Association suggests that many consumers may be paying for junk health insurance policies. These are policies that do not provide the expected coverage, something people don’t discover until they are in a time of need.
A junk policy misleads consumers into thinking that they are getting more than they really are. For example, many of these policies only provide coverage for public hospitals and don’t allow patients to choose their own doctor or arrange medical procedures at an appropriate time.
Policy names can trick consumers into thinking that they are getting good value for their money, simply because they are described using words like ‘essential’ or ‘comprehensive.’ These terms create the illusion that a policy offers a number of benefits, when in fact it may be a very basic policy.
Here’s How You Do It:
Step 1: Select your current life stage below.
Step 2: Once you select your preferred coverage options, you will have the opportunity to compare quotes from multiple health funds.
Consumer advocacy group CHOICE says that junk policies cover only 1% of hospital treatments, excluding common illnesses like cancer and heart disease. These policies might be useful in the event of an accident, but not for the everyday healthcare needs of Australians. In the end, junk policyholders often have to rely on Medicare despite having paid a premium for private health insurance.
Many junk policies place time restrictions on treatment which consumers are not aware of. Imagine finding out that your policy only covered one month of treatment, even though your doctor recommends that it continue for a year.
If you are on a junk health insurance policy, it’s time to make a change. Switching policies may be easier than you think, and you are well within your rights to do so. Thanks to portability rules, you should be able to switch to a new policy without repeating a waiting period already served for equivalent levels of cover, as long as there is no gap in coverage.
If you wish to upgrade cover, you may be subject to a waiting period for any new services that were not covered by your previous policy. You may also need to serve a waiting period for extras coverage, but this can vary by insurers. Don’t forget to request a clearance certificate from your old health fund when you cancel your cover – you will need to provide this to your new fund.
Compare health insurance policies and find the one that will keep you covered and provide value for money. The time to upgrade is now, before you find yourself in an emergency situation without the cover you thought you had.
Get Started Now:
Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.