Most private health funds have cancelled or postponed their annual premium increase until at least 1 October 2020.
The announcement was made by Private Healthcare Australia (PHA) which collectively represents 97% of people covered by private health insurance nationally.
Social distancing measures put in place to combat COVID-19 have resulted in large savings for insurers due to the forced closure of many extras providers and the cancellation of elective surgeries.
There have also been concerns of mass cancellations due to the widespread financial hardship caused by the pandemic.
- 1 Which funds have already agreed to postpone the rate rise?
- 2 What does this mean for my premium?
- 3 Are health insurers offering any other relief?
- 4 Will this affect my level of cover?
- 5 Will I be covered for costs related to COVID-19?
- 6 How can I continue to save on my health insurance?
- 7 Get Started Now:
Which funds have already agreed to postpone the rate rise?
If you do not see your provider in the list above, be sure to visit their website or contact them directly for the most up-to-date information.
What does this mean for my premium?
If your health fund has agreed to the price freeze, this means you will continue to pay your 2019 premium until you are told otherwise by your insurer.
Prior to the outbreak, premiums were due to increase by an average of 2.92%, which is the smallest annual increase since 2001.
It is likely the price increase will come into effect on October 1 2020, meaning singles will pay on average an additional $35 per year, with families paying an extra $103 more, according to the Minister for Health.
While the price freeze is in place, now is a great time to review your health insurance and compare what other providers are offering to ensure you’re paying the right price for the right cover.
Are health insurers offering any other relief?
Many health funds are also extending additional help to their members in the wake of the ongoing issues caused by the virus.
Will this affect my level of cover?
No, you will still have access to the same level of cover you had prior to the announcement.
If your fund is represented by Private Healthcare Australia, and you hold any hospital policy, you will be eligible for full hospital coverage if you are affected by coronavirus.
If you are not a member of a PHA fund visit your funds’ website for more information regarding coronavirus.
How can I continue to save on my health insurance?
While the price of private health insurance won’t change for the next six months, after the freeze period it’s expected some insurers may increase premiums by as much as 5.6%.
There’s never been a better time to review your health insurance and compare against our panel of providers to ensure you’re prepared for the expected price hike.
Get Started Now:
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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Australia: We saved our average customer **$380.79* on their average annual premium!
*Average savings based off 20,400 customers during 2019
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.