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Over 40% of Australians just copped an average rise of 2.9% in health insurance premiums on 1 October.
Since 2018, premiums have reportedly increased by an average of $685 for families, $504 for single parent families, and singles need to budget for an extra $349 each year.
And if that news isn't bad enough, health cover policyholders who haven't updated their policies recently are being stitched even further.
Compare Club analysis shows how fund members stand to lose out on substantial rebates for dental treatments, with dated policies failing to sync with steadily increasing living costs.
What the? Is my health fund ripping me off?
Not exactly, but it may seem that way. We often talk about the price of loyalty. This is a prime example of why we say you should regularly check your health cover and switch to better value deals. Even if that means staying with the same fund. Here's why.
After analysing a collection of older health insurance policies and comparing them with their modern counterparts, Compare Club found that dental benefits stagnated over time.
In some cases, Compare Club experts found that customers with the same health fund and same level of cover, are getting up to 50% less rebate when their policy is up to 10 years old, and closed to new members.
For example, the outmoded 'Saver Extras' offered by HBF Health Limited only provided a maximum of $81.00 rebate for surgical tooth extraction, compared to the current 'Flex 50' policy which offers a 50% rebate for the same procedure. “What's clear is that Australians are missing out on hundreds of dollars because they haven't reassessed their health insurance policy in line with the current cost of living crisis," says Kate Browne, Head Of Research at Compare Club.
"It's quite astonishing that two people can be with the same insurer, paying roughly the same amount on their premiums yet one is getting literally half as much money back on their dental rebates. If there was ever an incentive to give your health insurance cover a check up this is why."
The Bottom Line
Optimising the value received from your extras policy can reduce the pain of high cost dental visits. Here's what to look for from your health cover.
Extras are a great way to make savings. Look for higher annual limits so you get more back from your trip to the dentist, optometrist or physio, even if your premium goes up by a few dollars.
Don't keep paying for items you’ll never use. For example, if you're past the point of pregnancy, downsize to a cheaper policy that still covers everything you need (and no, you won’t have to serve new waiting periods).
Look for extras cover that is percentage based rather than a flat dollar figure rebate. This means you won’t lose out as inflation and your costs of treatment rise. The amount you get back will increase in line with your increased costs – which is what you want.
Go deeper: What is the annual private health insurance premium increase in 2023?
Related Guides: Health Cover for Dental Treatments
