Will You Be Paying More for Health Insurance This November?

By iSelect spokesperson Sophie Ryan

2022. The year many of us finally experienced a reprieve from lockdowns, mask-mandates and other COVID-19 restrictions. Unfortunately, it’s also a year likely to be remembered for skyrocketing cost-of-living. The price of everyday household items are going up left, right and centre! And for mums in charge of the household finances, no doubt this is a sore point. 

We hate to be the bearer of bad news, but the household budgets of many Aussie families with private health insurance have already seen or are in for another hit in the form of rising premiums. 

You may have heard about health insurance premiums increasing in April this year, but in fact, most of Australia’s biggest health insurers deferred their annual price rises until November 1^st. 

So read on to find out if you might be affected this November, and what steps to take that could save you money, plus why you should consider switching instead of ditching! 

1. Who will be affected? 

As mentioned earlier, most of the country’s biggest health insurers will increase their prices from November 1^st.  This means customers of Medibank/ahm, Bupa, nib and HCF are in for premium price increases by an average of between 2.66 per cent and 3.18 per cent. 

It might not seem like much, but it’s certainly not great timing, is it? Especially with so many families doing it really tough financially right now. 

So, with that in mind, let’s break down some simple steps you should consider taking right now that could help you get ahead of the premium increase, and potentially save you some money. 

2. Consider paying your premium upfront for a full year

If you’re in a position to, think about paying your health insurance premium upfront for a full year ahead of November 1^st. This will lock in your current rate for another 12 months. If your premium increased earlier in the year, there are other ways you could potentially save, such as setting up direct debit instead of paying by credit card. Some funds will give you a discount for doing this. 

Another tip is to think about whether it’s likely you’ll be admitted to hospital in the near future. If not, you could opt for a higher excess on eligible policies in exchange for lower overall premiums.   

Some funds may also offer incentives at certain times of the year, so now could be a good time to shop around and take advantage of any deals. 

3.  Should I ditch my cover?

We understand the stark financial reality many families are facing right now, and for some, health insurance could be firmly on the chopping block as you look for ways to cut down on spending. But policy holders should seriously consider seeing if they can switch first – rather than ditch – their health insurance. 

Having private health insurance provides peace of mind, not to mention that a suitable policy could give you more choice over where you and your loved ones will be treated (if you have eligible hospital cover). Additionally, depending on the policy it can also mean shorter waiting times for elective surgery – an important factor with waiting times for elective surgery continuing to blow out due to the COVID-19 backlog.

So, shop around and look for other ways to save before you give private health insurance the flick altogether. And remember, if you ditch and re-join later you will have to re-serve waiting periods on most things, which could be up to 12 months. 

4.  Is help out there? 

We’re so glad you asked. From the school run, medical appointments, to grocery shopping – we lead hectic lives and worrying about private health insurance isn’t something you want to add to that full plate of yours. That’s where a  comparison service like iSelect can help. They can assist you with finding cover that suits you or your family’s needs, circumstances, and budget by comparing hospital and extras policies from their range of providers* and maybe put some extra money back in your pocket to spend during the upcoming silly season!

iSelect Health Disclaimer

* iSelect does not compare all health insurance providers or policies in the market. The availability of policies will change from time to time. Not all policies available from its providers are compared by iSelect and due to commercial arrangements, your stated needs and circumstances, not all policies compared by iSelect will be available to all customers. Some policies and special offers are available only from iSelect’s contact centre or website. To view iSelect range of providers, visit: www.iselect.com.au/partners