Does your health insurer deserve your loyalty in 2020?

Between the global pandemic and job losses, it’s been a challenging year for Australians looking to keep their finances under control. But try telling that to health insurers. Not only have they put up premiums at the start of October, there’s another rate rise due next April.

But that doesn’t mean you have to accept an increase in your premiums. If staying loyal to your health fund in 2020 means getting hit with a price hike, then maybe it’s time to take back control by seeing if you can get a better deal on your health insurance elsewhere.

Wait, my health insurance premiums went up again? I thought the rate rise had been scrapped.

Sadly no. In 2020, April’s health insurance premium increase was only postponed, not cancelled. And while this might have given Australians some relief at the start of the COVID-19 outbreak, on October 1, rates rose by an average of 2.92%

Can insurers really put their prices up when so many Australians need to make every cent count? Sadly, yes. October’s rate rise went ahead and the process is already underway for another premium increase in April 2021.

It’s not all bad news. In October, a handful of insurers opted not to hit customers on JobKeeper or JobSeeker with a price rise.

And this January, we’ll find out if any insurers opt not to reset extras limits. After all, many of us, especially in Victoria, won’t have been able to get full value from our policies during COVID restrictions.

But the health funds that do make life easier for our bank balances are in the minority. Some funds even increased their average premiums by 5.6%.

But if you’re starting to feel like your insurer is taking advantage of your loyalty, there is a way to beat them at their own game by switching your cover.

If your loyalty isn’t being rewarded, why should you reward the health funds with more of your hard-earned cash?

Can I really save money by reviewing my cover?

Quite simply, yes. Last year, the team at Health Insurance Comparison saved customers an average of $380.79* when they compared and switched cover with us.

Not only that, our Melbourne-based specialists are experts in making sure you’re saving cash and getting value for money: they’ll look for higher benefits on the services you do use and help you avoid paying for services that you won’t need.

Best of all, you shouldn’t need to wait to make a claim. If you switch to cheaper equivalent cover, you won’t have to worry about being burdened with new waiting periods.

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.

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*Average savings based off 20,400 customers during 2019

Wouldn’t it just be easier to cancel my private health insurance?

You could but cancelling has a high risk of leaving you out-of-pocket. Not only will you need to re-serve waiting periods when you rejoin, but you put yourself at the mercy of public hospital waiting lists.

With a growing backlog in elective surgeries due to the pandemic, if you suddenly need an operation you could be faced with a long wait or a massive bill if you’ve cancelled your policy.

So be smart, not loyal. Don’t end up paying more when there’s better options on the market.

Simply fill in a few details for the Health Insurance Comparison team and one of their experts can help find a better policy for you that means you’re not paying more than you should.

*Based on 20,400 customers in 2019
^ Department of Health, Average annual premium price change by insurer, March 2020.

This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.

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