Aussies paying the price for sticking with their health fund
77% of health fund members haven’t switched funds in the last five years.
When was the last time you looked at getting a new health insurance policy? 'Cause if you're anything like the majority of Aussies, it's probably been a while. A survey conducted by finder.com.au has found that 77% of Aussies haven't switched funds in the last five years.
This backs up similar research finder conducted last year which found that the average Aussie stayed with their health fund for 11.8 years. You know what that's more three years longer than? The average marriage that ends in divorce, which lasts 8.4 years on average according to 2016 Australian Bureau of Statistics (ABS) data. Surely leaving your health fund is easier than separating from your partner?
Staying put is costing you money
In the last five years, private health insurance premiums have gone up an industry average 26.76% and with premiums for a single hospital policy projected to cost an average of $2,141.36 p.a. in 2018, someone with a set and forget mindset towards their cover would be spending $573.03 more on average than they would have five years ago. And a lot can change in five years. You might be thinking about having kids now. Your eyes may not be as sharp as they used to be and you now need glasses. The point is, things change.
| Year | Industry weighted average increase |
|---|---|
2014 | 6.20% |
2015 | 6.18% |
2016 | 5.59% |
2017 | 4.84% |
2018 | 3.95% |
It's important to make sure you're comparing your options and reviewing your policy to make sure it's still providing you with the cover you need. And this is the best time of year to do just that.
Health funds offer a range of deals and incentives to lock you in before premiums go up on 1 April. Plus you can avoid the rise by prepaying your premiums before that date. Some funds even offer up to 4% off for doing so.
If you don't want to get caught out this 1 April, compare your options and see if you can find a better deal.
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