How to Save on Your Health Insurance Cover?

Health insurance cover doesn’t need to be a luxury you go without. The following are10 tips to help you save, because health insurance is a necessity for looking after your family’s wellbeing.


Where to Get Coverage

1. No need for local loyalty. Australian insurance funds operate around the country and use national call centres and electronic claiming systems through the Health Insurance Claims and Processing Service (HICAPS) at the time of service or the internet. So, shop around nationally for the best deal on health insurance cover, rather than being bound by the thought that you need to visit a branch to sign up.

Expert Advice

2. Doctor’s advice. Your doctor knows yours and your family’s health better than most, so ask their advice about the type of health insurance they think you need to look at. Your doctor can look at your age and lifestyle factors and suggest possible risks you should be insured against in the future so you can make sure these things are included when choosing your cover.

Apply at the Right Time

3. Apply before you’re 31. Lifetime Health Cover penalises you if you take out health insurance later in life by adding a 2% age loading for every year after 30 you are without health insurance.
4. Government rebate. Make sure you register to receive the Private Health Insurance Rebate from the government which is at least 30% and goes up to 35% if you are 65-69 and up to 40% if you are 70 years or older.
5. Medicare levy surcharge. The Medicare levy surcharge is a charge placed on individuals and families on higher incomes who don’t have private hospital cover. The surcharge is 1% of your taxable income in addition to the normal 1.5% Medicare levy. It applies to singles with a taxable income greater than $80,000 and couples and families with a combined taxable income of more than $160,000 (indexed each year). This income bracket increases by $1,500 per dependent child after the first child.

Choose the Right Inclusions

6. Exclude cover for services you don’t need. If you’re young, you probably don’t need cover for joint replacements and cataract surgery. Look for products that exclude them.
7. Include your family. Take out a family cover for the cost of 2 single policies. Then you can cover the kids at no extra cost.
8. Hospital excess. Add an excess to your hospital cover. A $500 annual excess could save you up to $400 a year on a single membership.

Payment Methods

9. Upfront payment. Health funds increase their premiums every year in April but if you pay your health insurance premium in full before the increase you can pay the previous year’s rate for the coming year.
10. Payment method. Some health insurers offer discounts for different payment options so make sure you’re getting the best deal.

This article has been written by Allan, who is a regular blog contributor specialising in health insurance