Factsheets

Making the private health fund choice easier

May 22 07:10am

Around 44% or 9.4 million Australians have private health insurance in Australia. Yet the constant rises in premiums, complicated conditions and recent budget decisions mean the decision is again facing most Australians, whether they are members or not.

Changes

Previously, the income at which you begin being penalised if you don't have health insurance was $50,000. Now, due to the Federal Government's budget, this starts at $100,000 for singles or $150,000 combined if you are a couple.
Premiums for private health have also gone up by 5%.
It is estimated up to one million Australians are preparing to dump their private health cover because they don't need it.

Nicole Pedersen-McKinnon from Smart Investor is worried that the changes will mean people will drop out of their fund, place more pressure on the public system.

Should you abandon your cover
Nicole says that choosing private health insurance to avoid the medicare levy surcharge risks forgetting the lifetime membership rules. It might seem like a quick fix to the family budget to abandon your cover but it will be more expensive if you want to get back in after your 31st birthday.

Choosing your fund

Shop around is Nicole’s best advice.
There are some funds that cover just 60% of out of pocket expenses while others covered over 90% .
Always be sure to check the inclusions and exclusions, to minimise paying for things you will never use.

Nicole has done research for 38 private health funds and found the best fund for different groups:

Best Cover for Singles:

- Manchester Unity
- NIB
- CDH

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Best Cover for Families:

- CDH
- Australian Health Management
- Manchester Unity
- St Lukes

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Best Cover for Couples:

- CDH
- St Lukes

More info
What’s your decision regarding private health funds?

13 Comments Report Abuse

1. hel7096 - May 23 06:56am

I had Private Health insurance from 18 years of age through to 37 when my daughter was born. Now, as a single mum I simply cannot afford private health insurance. Even though there's only 2 of us, we are regarded as a family. The 18 years I did pay into it is dead money that I could've used now.

2. alycemeredith - May 23 08:26am

My husband and I have private health insurance for just incase but it is getting hard to balance it all as a young couple (both 21) with the house repayments with other usual expenses and I am still studying my degree and work part time. Times are getting tough!

3. tabi_32 - May 23 09:10am

We have had Private health cover & Have not used the hospital part hardly at all. We made a decision before the budget to stop our hospital cover but keep our extra's. We are going to put the money we were paying for hospital into our mortgage & if it is needed we can redraw to pay our hospital usag

4. ajohnintime - May 23 09:23am

Hey, ring iSelect on 13 19 20, they are really good for this kind of thing.

5. jange91 - May 23 12:33pm

Choice magazine do a review of the 'best buys' every year and they base it on the best value for your money (not just which is cheapest up front). Worth looking at. On the last one GMHBA came out with more best buys than any other fund. You need to look around & find what's best for you.

6. aussiebattler22 - May 23 02:05pm

I was really disappointed with the treatment I got from Australian Unity after ten years with the company. They made it really difficult for my family when my mum was sick. I changed my family to Manchester Unity and they have been great so far! The call centre people are so helpful.

7. downunder2au - May 23 02:40pm

I live in a small country town, where the small private hospital has visiting specialist doctors. If you don't have private health cover and need an operation it can't be done here. You can be poor and happy, I'm keeping my health insurance.

8. schwenketribe78 - May 23 03:27pm

I am with the largest health fund in Australia & I have never made a claim ever on my hospital cover although I have used my extras (dental) once 4 free dental check up & scale & clean. I would never give it up, its like having car insurance you dont necessary need it but its there for peace of mind

9. emma_298 - May 23 06:59pm

Don't ring ISetect as they take commissions and sell you the best cover for them, NOT for you. They also only have eight health insurers which is a poor selection considering how many health funds there are in Australia.

10. emma_298 - May 23 07:01pm

If you want to be informed and compare health insurers the best place for information is privatehealth.gov.au It is a non bias government website showing all health funds, even restricted funds, base premiums, information statements and links to fund websites. BE INFORMED!