Lower health insurance premiums in 2020? That was the plan

Lower prices for policyholders promised but not delivered. Now what?

Brace yourself. Private health insurance costs are set to rise again on April 1, 2020, and premiums are likely to increase at double the rate of inflation thanks to a recent deal between federal Health Minister Greg Hunt and the medical devices industry failing to deliver the anticipated savings.

Aussies will be faced with an estimated rise of 3.25 per cent* – but why should you pay more for false promises? While health funds have no choice but to pass costs onto loyal customers, you can take back control by comparing your cover with this easy-to-use, award winning tool.

Review your health cover before the rate rise to secure a great-value deal for 2020. If you pay in advance, you can even lock in 2019 prices for another year. Don’t risk it and wait for next year’s price hike to decide what your premium will look like.

Lock in lower rates

Step 1: Select your current life stage below.

Step 2: Once you select your preferred coverage options, you will have the opportunity to compare quotes from multiple health funds.

The latest statistics show 65,000 fewer Australians held health insurance in December 2018 than a year earlier. With regular premium increases and confusing reforms, it’s no surprise that an increasing number of Aussies are giving up their cover, especially the younger generation struggling to see the value in maintaining a policy.

Despite that, private health cover remains a valuable asset for many Australians. Hospital cover alone allows you to get the medical attention you need at a reasonable time and place, rather than being stuck on a public hospital waiting list through Medicare.

However, shopping for health cover isn’t as simple as picking out a new outfit or test driving a car. There’s no easy, one-size-fits-all solution for everyone, and buying the right policy can feel like finding a needle in a haystack.

That’s because it is. There’s no denying health insurance will cost more in 2020 for some policyholders, but not all insurers will increase prices. What’s more – you’d be surprised just how much money can be saved by switching to a more cost-effective policy with the same level of cover.

Aussies who reviewed their cover with Health Insurance Comparison saved an average of $340.68* on their premium annually, while potentially getting more comprehensive cover along with the savings. That’s an extra $340 that could be put towards the mortgage or a much-needed getaway every year.

At the end of the day, we’re talking about your wallet and your hard-earned cash. Don’t let reforms and rate rises that are beyond your control dictate how much you’ll pay for the healthcare you need – no one can take away your right to compare for a fairer deal and a more suitable policy.

What will premiums look like in 2020?

A spokesman for Mr Hunt said: “The government continues to work with the sector on the next wave of positive reforms to continue to improve private health insurance and we expect private health insurers to play their part in delivering value for money for consumers and policyholders.”

We know the average increase is expected to be about 3.25 per cent, but individual health insurers are in the process of submitting their proposed premium hikes for 2020. They will later be approved by the Health Department, so stay tuned – we’ll know more by late December when Mr Hunt announces the approved increase.

In the meantime, don’t take chances – compare policies in minutes to lock in a great-value deal for 2020. Simply click on your state below and potentially save hundreds in premiums.

Get started now

Step 1: Select your state below.

Step 2: After answering a few questions, you will be able to compare quotes in your area and could be eligible for significant savings.

This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.

References:

Health insurance premiums rise after government deal fails to reduce costs (The Sydney Morning Herald)

*Based on average annual customer savings in 2018