Annual Review of Private Health Insurance Provides Benefits, Saves Costs

Introduction

A yearly review of private health insurance not only provides the opportunities to reduce costs but also guarantees that the existing policy provides the required cover.

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Review hospital cover needs

Private hospital cover may not be applicable to healthy individuals under the age of 31, provided their income is also below the threshold of Medicare Levy Surcharge. After signing up for hospital cover, individuals should continue to assess the cover every year to make sure that it meets their requirements and at the same time is not too comprehensive.

Review extras cover needs

Younger and healthier individuals who do not require access to the entire scope of potential extras should review additional cover as this can present the biggest opportunity for savings. Excluding any prearranged major life changes, people should contemplate any benefits under extras cover which they have not utilized in the past 1 to 2 years.

Families who no longer have their children as dependents or those with older children could change to a family plan without coverage for speech therapy and orthodontics. Without children, a couple’s plan could be adequate with no pre-natal and post-natal benefits.

Consider major life changes

Not all major life changes are planned, but individuals should at least consider those that are intended, be it marriage, childbirth, divorce, or retirement, for example.

Many insurers have a waiting period of 12 months for anything associated with childbirth, which means couples who are planning to start a family may have to change to a more comprehensive health coverage far in advance.

While this does not provide any instant cost-saving, it does provide lower out-of-pocket expenses in the future. In a similar way, a new marriage will lead to a change in health insurance needs and costs, although the Australian Government Rebate may offset any increase in cost.

Risks in switching health insurance

There are pitfalls to switching health insurance plans, but being aware of what they are can help people to alleviate them. Reducing coverage excessively and becoming accountable for the Medical Levy Surcharge is probably the greatest risk. The loss of any loyalty discounts or bonuses and new waiting periods for certain procedures are the other risks.

Compare available health insurance products

Armed with all this information, customers can utilize the services of iSelect to compare private health insurance plans in Australia. Successful comparisons begin when individuals are aware of their healthcare requirements, together with what their existing coverage costs include.

In the context of healthcare, the value is not invariably found in cost but instead in a combination of benefits and costs, and a yearly review of private health insurance has to consider this combination.

About iSelect

As Australia’s Life Admin Store™, iSelect helps customers take care of some of life’s most important purchase decisions. They are proud of the service they provide to the millions of Australians who seek expert advice each year. With plenty of partners and hundreds of policies, plans and products, iSelect gives customers the confidence to make the right call on the things that matter most.

Their dedicated departments cover all of life’s essentials, from choosing the right health insurance, life insurance, obtaining a car insurance quote to a home loan comparison. iSelect can help customers with electricity providers, broadband connections, and even take care of travel insurance.  


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Last updated: Nov 19, 2018 at 10:50 AM

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