Health insurance premiums are going up again. Here’s how you can save
2021’s health insurance premium increase is going ahead but you can beat the funds at their own game. Photo: Getty
Do you feel like the cost of your health insurance is always going up? You’re not wrong.
Premiums are about to rise again by an average of 2.74%, even though most funds only put up their costs as recently as October 2020.
It means that if you haven’t compared health insurance in the past 12 months, your insurance could have gone up by hundreds of dollars, while your policy remains unchanged.
Why your premium is about to go up for the second time in six months
Due to the COVID pandemic last year, insurers delayed raising their premiums until October.
That was welcome relief at the time, but another rise in April 2021 means households will have been hit by a combined average increase of 5.66% over the past 12 months.
Don’t pay the price for loyalty – compare insurers for free with Health Insurance Comparison to see how much you could save. Photo: Getty
Importantly, the latest annual Consumer Price Index had only risen by 0.7% at the time the government approved the health insurance increase.
That means health insurance premiums are rising at roughly eight times the rate of inflation.
What’s more, the biggest health funds are all increasing their average premiums this April by more than industry average of 2.74%.
It all adds up to an increase in our monthly expenses at a time when many Australians are already juggling their finances.
Can you do better?
It’s worth taking time to compare policies. In 2020, our team at Health Insurance Comparison saved people an average of $312 when they compared and switched with us.
That’s often enough to cancel out the cost of your health insurer’s rate rise.
Australian families, seniors, couples and young singles who explore their health cover options could end up much better off than those who stay with the same fund for years.
This year, loyalty doesn’t pay. Get in touch with Health Insurance Comparison today to see how much you could save in 2021.
This article is opinion only and should not be taken as financial advice. Check with a financial professional before making any decisions.
References: Department of Health, list of health insurance increases fund-by-fund 1997 – 2021
Department of Health, average annual increase in private health insurance premiums, December 2020