This is going to hurt. Around 15 million Aussies with some form of private health care cover are about to feel the pinch of another rate rise on 1 April.

The government has approved an industry average price increase of 3.73% – the biggest hike since 2018 and a kick in the teeth as Aussies also juggle rising grocery prices, energy bill blowouts and higher insurance premiums across the board.

But don’t be fooled by the headline figure – the impact varies massively between funds, and individual policies.  Some of the nation’s popular funds are increasing above the industry average. The highest average increase is 9.56%.

The team at Compare the Market is hearing from some customers who have been told they’ll pay hundreds more in premiums a year if they stay on the same policy with their current provider.

But it’s not too late to put your policy under the microscope, do a pulse check on features, and take a scalpel to some of the extra bits you may not be using.

Here are my health insurance saving hacks, which aren’t as scary as you’d think.

Lock in last year’s prices

Some health funds will let you pay for your policy up to a year in advance. By paying 12 months up front before prices go up on 1 April you can effectively turn back time on this year’s rate rise.

While not everyone is in the financial position to pay a year’s worth of premiums in one hit, this hack is a doozy if you can do it. Depending on your fund and your policy this move could help you avoid hundreds of dollars in extra premiums for 12 months.

Switch don’t ditch!

If you’ve been with the same health fund for several years, you could be missing out on offers and incentives reserved for new customers. Run a quick comparison and see if you can find similar value for less.

Bump up your excess

A higher excess can be a great way to save on your regular premium, as long as you don’t mind paying more in the event you need to claim on your hospital policy.

If you don’t have any hospital visits or treatments planned, and you have a bit of money stashed in your emergency fund, this could be a good option.

Work your perks and incentives

We’ve already started seeing health insurers offer an array of great perks and incentives to lure in new customers, including weeks of free membership, waived waiting periods and more. If you can find cheaper cover, these offers are a great way to sweeten the deal.

Switch to a lower level of cover

All that glitters is not gold! Unless you need cover for pregnancy, sleep studies or weight loss surgery, you might be better off on a lower level of cover. Even a silver plus policy, which is very comprehensive, will cost a lot less than top tier, gold cover.

Speak to an expert and see if a lower level of cover might better suit your needs and budget.

Use or lose extras

Remember to review your extras policy and consider removing services that you no longer use. If you only need new glasses every five years, you may not be getting enough value from your cover and could potentially save more by removing this benefit entirely. The great thing about private health insurance is you can upgrade at any time. So if your circumstances change and you need new glasses more regularly in the future, you can switch to a more suitable policy and simply serve any relevant waiting periods.

Some extras policies can include benefits like massage, acupuncture and even hypnotherapy. If you’re using them, great. If you’re not, time to lose them!

Remember if you are switching, it’s a lot easier than you think. Switching to the same level of cover (or lower) with a new provider doesn’t mean you’ll get hit with new waiting periods.

Also remember that having a pre-existing condition doesn’t impact your risk rating with another provider.

David Koch is Compare the Market’s Economic Director

For more information, please contact:  

Phillip Portman | 0437 384 471 | [email protected]

Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.