Does your health insurer deserve your loyalty in 2021?

Between the global pandemic and job losses, it’s a challenging year for Australians looking to keep their finances under control. But most health insurers have put their premiums up twice in the six months since October 2020, bringing more misery to our bank balances.

But that doesn’t mean you have to accept an increase in your premiums. If staying loyal to your health fund in 2021 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 are going up again? I thought they’d been cancelled.

Sadly not. In 2020, most funds pushed their annual health insurance rate rise back from April to October due to the pandemic. That gave Australians a little relief, but the insurance industry has kept 2021’s increase in place.

That meant that on 1 April 2021, most households would have seen their health premiums rise.

But can insurers really put their prices up when so many Australians need to make every cent count? Unfortunately, yes. 

The government hasn’t stopped 2021’s rate rise and despite press releases trumpeting the lowest increase in 20 years, the reality is that health premiums will have risen by an average of 5.66% since October 2020.

That’s just the average. Many funds increased premiums by more than that amount.

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 $312* 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 25,311 customers during 2020

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 re-join, but you put yourself at the mercy of public 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 25,311 customers in 2020
^ 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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