Australia’s population is rapidly aging and the cost of healthcare is increasing. It’s costing providers more and, if approved by independent regulators, the additional cost is passed on to consumers.
When deciding whether to obtain private health insurance, you have to consider the expense and the perks. Having coverage means being able to choose your doctor, have a choice to be treated in a private or public hospital, and reduced waiting time in the queue.
Making an annual payment and paying by direct debit can result in discounts and will lock in the rate before it can increase. If you wait until you’re older than 31, you’ll end up paying the Lifetime Health Cover on your hospital policy–which can be up to 40%.
It’s important to research the policies you’re considering, keeping in mind that comparison websites don’t offer independent advice. The website privatehealth.gov has a database of all the policies available in Australia and offers free, unbiased information.
After choosing a policy, make sure to review it annually to ensure you’re getting a good value and you’ll be covered for the things you might need. With research, you may find that another provider can offer the same benefits at a lower price. Some insurers are also willing to honor any waiting periods you’ve already undergone. Since a health insurance policy isn’t a fixed contract, making a switch isn’t overly difficult.
You should definitely prepare before any surprises. #HealthStatus
- 1Due to the rapidly aging population in Australia, private health insurance rates are increasing.
- 2Private health insurance offers benefits such as a shorter queue or the ability to choose a provider.
- 3The expected increase will be about $2 a week for singles or $4 a week for families; depending on your income, it may exempt individuals from the Medicare Levy Surcharge.