How families will be affected by the health insurance rebate reduction in 2021

After a challenging 2020 where many Australian families felt the financial squeeze, they now face another blow after news that the health insurance rebate is being reduced. 

It’s one of a number of health insurance changes that will put added pressure on the weekly budgets – and it’s why comparing and switching health cover could be one way to save some extra cash.

Paying too much?

Australia: We saved our average customer $312* on their average annual premium! Select your age and see how much you could save!

*Average savings based off 25,311 customers during 2020

Rebate reduced, premium on the rise

The government rebate offers Aussie families an incentive to take out private health cover. It’s a way to help cover the cost of premiums according to age and income, while supporting families and couples earning under $280,000 a year.

But that rebate is now being reduced. Couples or families earning under $180,000 a year will see the percentage they get back drop from 25.059% to 24.608%*.

It comes ahead of April’s planned premium increase, when health funds will raise their prices by an average of 2.74%. 

Even applying a reduced rebate to a higher premium could still see families pay more. A few dollars extra a month can add up over time, especially if you’re looking to make every cent count.

So how can families and couples still enjoy quality private health cover while keeping costs down?

One route is to compare and switch to a cheaper policy that offers a similar level of cover. Get it right and you won’t have to serve any new waiting periods either.

Table detailing changes to family rebate rate for health insurance

The simplest way to save?

The good news is it’s still possible for families to beat the providers who plan to raise their premiums by comparing funds today.

It’s a smart and simple move to compare policies and see if you could do better, especially if you’ve been with the same fund for a number of years and the cost of your policy has slowly risen.

The Health Insurance Comparison team specialises in saving Australian families money, regardless of whether it’s cutting costs or looking for better value. 

It’s quick, simple and our team do all the hard work, such as sending the paperwork to your new fund.

Last year we helped thousands of Australian families save, on average, $483* when comparing and switching health funds with us. 

It’s a simple way to reduce costs and take the sting out of more expensive premiums in 2021.

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

*Department of Health, Medicare Benefits Division, Feb 2021
**Based on 4,599 policies in 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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