When it comes to managing healthcare costs in Australia, enrolling in private health plans can offer a host of benefits. These plans can help you access a range of medical services at a fraction of the cost, allowing you to avoid long waits in the public system and access treatments faster.
Saving money with private health plans, however, requires careful consideration and smart choices. Below, we’ll explore strategies for getting the most value out of these health cover options, ensuring that you secure vital medical care while managing your monthly expenses effectively.
Choosing the right coverage
The first step in saving money with private health plans is selecting the right coverage. It can be tempting to opt for the most comprehensive plan available, but this may not be necessary or cost-effective for everyone. Consider your personal health needs, age, and lifestyle before choosing a plan. If you’re young and healthy, a lower-tier coverage might be enough. Conversely, families or older individuals might require more comprehensive protection.
An essential factor is to ensure your plan doesn’t include services you won’t use. Exclude unnecessary coverages such as orthodontics or pregnancy if these don’t apply to your situation. This exclusion can significantly reduce your premium costs. Think about your probable needs over the next 12 months and adapt your coverage accordingly.
Moreover, compare different providers’ offerings. Pricing and policies can vary significantly between insurers. Use online comparison tools to find a plan that fits your needs and budget. Remember, the cheapest plan isn’t always the best one if it doesn’t adequately cover your potential medical needs.
Understand your extras
Extras cover provides benefits for treatments like dental, optical, and physio, which aren’t included in hospital insurance. Knowing how to use your extras efficiently can lead to considerable savings. Determine which extras you’ll use regularly, and ensure your plan offers good returns on these services.
Before selecting a plan, evaluate how much of the service cost is covered by the insurance. Some plans offer minimal payout percentages or cap the amount covered per year. Choose a policy that offers the best value for the treatments you likely will require regularly.
Take advantage of government rebates
In Australia, the government offers incentives for taking out private health insurance, making your premiums more affordable. The private health insurance rebate is income-tested and helps reduce the cost of premiums for eligible Australians. Depending on your income level, you could save a significant portion of your insurance costs.
Check your eligibility for the health insurance rebate. You can opt to receive this rebate as a reduction in your premium or as a tax offset when you lodge your tax return. Ensure your details with your insurer are up to date to avoid any hiccups in receiving the rebate.
Optimising your claims
Maximising the savings on your private health plan requires strategic claims management. Being savvy about how and when to lodge a claim can stretch your coverage further. Understand the claiming process for your insurer to ensure you’re getting the maximum benefit for your services promptly.
Always check if your treatment needs pre-approval and whether there are waiting periods that apply before you can claim certain benefits. Ensure you file your claims correctly and as soon as possible to avoid missing out on your entitlements. Mistakes or delays can lead to lost benefits or additional out-of-pocket expenses.
Review and adjust annually
It’s wise to review your health insurance policy each year to ensure it still meets your needs. Life circumstances, such as changing jobs, having children, or experiencing health issues, can create new coverage requirements or allow for cost-saving adjustments.
Check for changes in premiums, benefit limits, and rebate eligibility as these can influence your decision to stay with your current plan or switch providers. Contact your insurer to discuss any loyalty discounts or special offers available for continued members, which could further lower your costs.
Review different plans regularly and switch if a better option presents itself. Use free cancellation periods when changing plans to avoid being locked in. Ensuring your health plan evolves with your needs and circumstances is crucial for cost-efficient healthcare coverage.
Increase your excess
Increasing your excess – the amount you pay upfront before your insurance kicks in – can lead to lower premiums. This option works well if you’re healthy and not anticipating any major hospital visits. A higher excess can decrease your monthly or annual costs significantly without compromising your access to necessary care.
Be sure to weigh the potential savings against the likelihood of needing hospitalisation. It’s a balancing act between saving on premiums and being comfortable with the out-of-pocket costs should you require medical attention. Choose an excess that aligns with your financial comfort zone and health prospects.
