Families Urged to Shop Around for Best Health Insurance Deal
From April, private health insurance premiums will increase by an average of 5.6%, as the government urged families to shop around for the best deal using comparisons available on the government’s health fund website.
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8 February 2013
From April, private health insurance premiums will increase by an average of 5.6%, as the government urged families to shop around for the best deal using comparisons available on the government’s health fund website.
“This year’s premium increase remains well below rises when Tony Abbott was Minister for Health, which peaked at 7.96% and averaged 6.44%,” Ms Plibersek said.
“Families can find the best deal by shopping around, as more than half of private health insurers are this year increasing their premiums by an average of less than 5%.”
On average, a combined single policy costing $1,600 annually will increase by around $1.72 a week (after the 30% rebate has been deducted). On average, a combined family policy costing $3,400 annually will increase by around $3.70 a week (after the 30% rebate has been deducted).
Families can search a database at the Private Health website which presents products offering the same cover, and the variations in pricing.
Ms Plibersek said the website, established by the government and supported by industry, provides reliable, current information about all insurers and their products – allowing families to make an informed choice.
The table below shows the wide variety of premiums by using the example of what is popularly known as ‘top, combined’ cover for couples receiving a 30% rebate. The blue dots show that premiums for this product can range from around $300 to $500 a month.
Ms Plibersek said the government worked hard to keep the premium rises for families to a minimum while ensuring that insurance companies were able to cover their cost increases.
The average premium increases for individual insurers will be published on the Department of Health and Ageing website to give consumers further information to help them choose the policy that is best for them.
This year’s average increase is significantly less than the 9.3 per cent jump in benefits that private health insurance companies paid to their members in the 2011-12 financial year. Benefits paid by private health insurers to their members in the last financial year have risen by $1.2 billion to more than $14 billion.
Almost 10.7 million Australians have private health insurance hospital cover, the highest number in 37 years.
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