10 Top Tips: Saving on private health insurance (PHI) costs
10 tips to save on your private health costs so you can plan to enjoy your spend somewhere else!
With the details of the 1 April 2024 PHI premium increase now available, it's time to review your PH cover to find out if you can make savings!
You’ve got less than two weeks!
Here are some key facts to keep in mind:
From 1 April 2024 PHI premiums increase by an average 3.03%
Different health funds have premium rises from 2.89% - 4.1%
Last year's increase was 2.9% and the 10-year average is 4.4%
There is no change to the government PHIR*
Your health fund will let you know your policy's actual increase before it takes effect. However, it's a good idea to compare what's on offer to make sure you're still getting the best deal, and, cover that's appropriate for your needs.
Top 10 tips for saving on PHI costs
1. Check the details of what you're covered for and make relevant changes.
For example, you may need:
better hospital cover eg for elective surgery
less extras, or
less cover
2. Look for discounts
Some Funds offer a discount for early payment or direct debit
3. You can lock in a price by paying before 1 April
You could save on the annual fee increase by paying your premium 12 months in advance. Otherwise, you'll be locked into higher rates.
You need to pay the day before renewal day at the latest.
Please note: It’s just under 2 weeks until 1 April 2024, and Easter is 29 March – 1 April this year.
4. What's your income?**
If you don't have PHI and earn above a certain amount, you'll pay an additional penalty of 1% - 1.5% tax as Medicare Levy Surcharge (MLS) for each day you're not covered, in addition to the 2% Medicare Levy.
5. Age matters
After age 31, If you don’t take out PH cover, the Lifetime Health Cover loading kicks in, adding a 2% loading to your premium for every year you don’t take out cover.
6. Check your excess
Like excess on car insurance, you may be able to reduce your premium by increasing your PHI excess.
7. Extras excess??
An excess maybe there for extras cover - some funds let you choose a percentage fee refund i.e. higher cost extras can mean a bigger percentage refund.
8. Corporate membership
Some employers and organisations offer a PHI policy that they part or fully fund, for employees.
9. Check out the fine print
Insurers have many different deals plans for what they cover. While costs may look attractive, older policies are often more generous.
10. Customer service
This is all important if you or your family are unwell. It’s really worth it to know that your insurer is there for you at a time when you absolutely need it!
Have you made the time to check where you could save, before the Easter break?
Next steps:
Call us for a quick chat or drop us a line for help with saving on your private health insurance costs and getting your money working for you.
* PHIR is the sum the government contributes toward the cost of your PHI premiums. It’s income tested, so how much you can claim depends on how much you earn each year.
** Base income threshold is $93,000 for singles, and $186,000 for families for the 2023/24 tax year.
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