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Private Health Insurance Discounts

aldwin sab October 7th, 2011 0 comments

Insurance policies almost always involve talk of discounts.  Whenever you compare private health insurance or other insurances, you should be looking at possible ways to save with discounts.  In Australia, there are some particularly interesting options for consumers.

Image by John Lewis

Standard Discounts

While there are not many discounts in health insurance, at least compared to something like car insurance, certainly there are some “standard” discounts of which one should be aware.  Keep these in your sights.

First,you can bundle multiple insurances.  With regard to just about any type of insurance, you should be able to earn a discount when you bundle two or more insurance policies with an insurance company.  If your (potential) health insurance company also offers car insurance, home insurance and more, keep this in your mind for saving money on the lot. You can obtain significant savings by bundling your policies.

There are a couple of ways to get discounts when you pay for health insurance.  The first is to pay your private health insurance premium upfront.  Premiums are often increased annually around April-time, by around 5% each year; if you pay for your insurance for the full year, you can lock in those rates for a whole 12 months.

The second way is to pay your health insurance premium by direct debit.  Many insurance companies will offer you a discount if you choose to pay in this manner.  This could instantly save you 4%  or 5% just for paying by direct debit, something that you could certainly take advantage of in your policy.

Government Discounts

While incentives and levies aren’t exactly “discounts,” they’re related for our purposes.  They can definitely allow you to save on your health insurance.

The Private Health Insurance Rebate will save you at least 30% on your premiums.  The Lifetime Health Cover (LHC) and the Medicare Levy Surcharge (MLS) will encourage those who qualify to purchase private health insurance.

These are items that can provide a significant impact on your health insurance, or related costs.  The 1-1.5% on the MLS and the increasing rate on LHC, along with up to 34% rebate on the cost of health insurance depending on age and income, are numbers that should make you think twice about not purchasing private health insurance.

Other Options

You may choose to supplement your health coverage with discount plans, especially if you’re currently getting basic coverage levels (for example, to avoid financial penalties).

Again, these items are not health insurance discounts in themselves, though they certainly offer effective discounts on health related matters.  You can find them in a variety of settings, such as a prescription card from a major pharmacy or a chiropractic discount plan through an independent company.

Discounts of these kind can be quite effective.  There are many, many options here that can be well worth it for some, and not so much for others.  They require a personalised and in-depth look to see if they are worth purchasing in your particular situation.

Overall, there are a variety of choices for obtaining some type of discount with health insurance.  Perhaps you’ve been overlooking some of these options. Or, perhaps you can tell us about one that’s missing from this article?

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