As the year draws to a close, it’s not just the holiday season that should be on your mind, especially if you’re one of the many Australians with private health insurance. A crucial deadline is fast approaching, and it’s one that could see you missing out on a significant sum if you’re not quick to act. With just six business days remaining, it’s time to make those last-minute appointments and make the most of your health benefits.
The clock is ticking for policyholders to utilise their ‘extras’ cover benefits before they reset. Come January 1st, more than 80% of insurers will renew these benefits, and it’s a classic case of ‘use it or lose it.’ If you’ve been postponing that visit to the optometrist, dentist, or physiotherapist, now’s the moment to spring into action.
Sally Tindall, Canstar’s data insights director, emphasises the importance of this period, noting that it’s an excellent opportunity to keep healthcare costs down in the coming year. ‘By acting now, you can make the most of your extras before your annual limit is reset if your cover is with a provider that renews their extras limits on January 1,’ she advises.
However, Tindall also cautions against unnecessary appointments just to use up benefits. With the average out-of-pocket cost over the last 12 months to September sitting at $60, it’s essential to ensure that any bookings you make are genuinely needed.
The first step is to check with your health insurance provider to confirm if your benefits reset on January 1 or another date. Major insurers such as AAMI, Medibank, Australian Seniors, nib Health Funds, Bupa, Qantas Insurance, and Suncorp Insurance are known to have this reset date, but it’s always best to verify directly.
According to the latest APRA quarterly health insurance investigation, the average Australian received $475 back in benefits in the year leading up to September 2024, marking a 3.5% increase from the previous year. Dental benefits accounted for the largest portion, with an average of $262 paid per insured individual.
Yet, despite these available benefits, an iSelect health insurance comparison revealed that a staggering 86% of Aussies hadn’t used all their extras before the deadline. Even more concerning, one in five hadn’t used any extras throughout the year, and 12% were unsure if they had used them at all.
Andres Gutierrez, iSelect general manager, points out the potential loss: ‘Many Aussie families could potentially be missing out on hundreds or thousands of dollars a year in unused extras benefits.’ With popular extras policies offering around $1,750 in benefits, it’s a significant amount that could go to waste if not claimed in time.
How have you been making use of your health insurance extras this year? Or are there still benefits left unclaimed? Join the conversation in the comments below and share any tips for getting the most out of your policy.
Also read: Health insurance reform desperately needed, advocates say
