Do you feel like the cost of your health insurance is always going up? You’re not wrong. Premiums are rose again by an average of 2.74% in April 2021, 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 went 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 meant households have been hit by a combined average increase of 5.66% over the past 12 months
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 all increased 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, the team at Health Insurance Comparison saved people an average of $312 when they compared and switched with Health Insurance Comparison. 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
