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NewsOver 55's are being hit by larger-than-average premium increases
Over 55's are being hit by larger-than-average premium increases

Over 55's are being hit by larger-than-average premium increases

Tags: Health Insurance
Last updated by Kayley Harris on

New evidence suggests the Over-50s are once again getting bigger premium increases than the general population as the April 1 deadline approaches for Health Insurance price rises. 

The national average increase might be 4.8%, but a new FiftyUp Club poll of 500 people revealed:

  • 65% of us will face a health premium rise greater than 5 per cent
  • 45% are planning on dropping or downgrading their cover, and
  • 60% are “furious” about the latest premium increase

Last week I revealed my mum’s premium had increased by 13% and this week we heard from one 79-year-old Queensland member hit with a whopping 14.7% increase!

“I have tried on 2 occasions to phone them but gave up after 20 mins!” they said.

Click here to see the members’ offer from HCF, or call the hotline for a quote: 1800 345 044

As the April 1 deadline approaches and we all have to dig a little deeper into our pockets to pay for private health insurance, many members have started receiving notification letters from their funds explaining their increase.

Half of Private Health Insurance customers aged over 50 are receiving premium increases over 7% on April 1 – much higher than the 4.8% average announced by the Government.

Last week I revealed my mum’s premium had increased by 13% and this week we hear from one 79-year-old Queensland member hit with a whopping 14.7% increase.

A new FiftyUp Club poll of 500 over-50s revealed:

  • 65% will face a health premium rise greater than 5 per cent
  • 45% are planning on dropping or downgrading their cover, and
  • 60% are “furious” about the latest premium increase

Health premiums are set to rise by an average of 4.84% from April 1, the survey shows older Australians’ health premium prices hikes do not reflect the national average.

Health funds have been notifying their members about premium increases that are much higher than the average increase, and it risks pushing over 50s out of private health care at a time when they need it most.

The latest increase comes as private health coverage is going backwards for the first time in 15 years. Health premiums have risen 71% in a decade, yet the latest increase has been touted as “the lowest annual increase in a decade[1]”.  

Last week’s blog on Health insurance (read here) certainly started a flurry of response from members:

Leonie from QLD offered advice: “Simple...... we’re all over 50 now.... change health insurance companies. “

Annette from VIC says: “I too feel cross about the price hikes but without private cover I would have had to wait months and months before seeing a specialist and then to wait even longer for surgery. There needs to be a better compromise with tax relief for those who pay their own way.” 

  • Click here to see the latest health offer
  • Click here to hear the interview with Dr Ross Walker on how Australians are paying 4 times more for medications than our kiwi neighbours
  • Click here to here about a great health insurance hack that could save you thousands
Originally posted on .

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Over 55's are being hit by larger-than-average premium increases

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Barbara
Barbara from NSW commented:

I have been with HCF for over 10 years and am excluded from your offer. When I enquired I was told I have a older product and pregnancy and obstetrics is included in my cover. When I asked for it to be excluded I was told my premium would increase. Now my increase is 13.85%. Disgusted. 

Jo-Anne
Jo-Anne from NSW commented:

I am a 56yr old single woman paying the gov's 42% levy for not having had continuous cover due to the fact that prior to 2012 I just couldn't afford it. Now with the recent price hikes once again I can't afford it and have dropped my cover altogether. The government, in league with the private health insurance companies, are not looking after us. They're hellbent on fleecing us. 

Kieth
Kieth from NSW commented:

My wife and I have been HCF members for many years (20+). We are in our late sixties and our premium will increase by 8.6% from 1 April. Our 30 year old single daughter, also with HCF, has had her premium increased by 7.4%. Who exactly is getting the much lower premium increases that lead to the average increase as claimed by HCF? Or is that just a "marketing number"? 

Someone
Someone from VIC commented:

I am 80yo and live in Victoria . I a have recieved a letter from HCF, your preferred health insurance provider. They have increased the premium by 11.14% ., their explanations leave a lot to be desired and explation of the big increase do not make sense particularly when they are claiming an average increase of 3.65%. I have been a member of HCF. For more than 10 years and am excluded from your programme. 

Peter
Peter from NSW commented:

My wife and I have Top Hospital (Corporate) cover with Bupa which we paid fortnightly. We had previously had combined cover, but never claimed any extras, so it was dead money. As the fortnightly premium was going to rise by 11.6% on 1 April 2016, we decided to lock in the 2015 premium by paying yearly in advance. A sum of $2406.49 which took us up to 3 April 2017. I have just received the renewal from Bupa and they want us to pay $3032.40 as the new premium. This is a 26% increase. They are not allowing me to pay the 2016 premium of $2765.40 as we are paid past the 31 March 2017. I am now looking to see what else is available from other funds, although I am considering dropping the private health insurance altogether and saving the money. Alternatively, I might just keep the private health cover for my wife and drop mine entirely. 

Casey
Casey from VIC replied to Peter:

There was a ploy by one of the companies (can't remember which one now, but it was a year or so ago) to offer you a "free" month's membership. That "free" month took you over the 1 April deadline, so they got you there. I've changed our cover and we no longer bother with "extras", which are a real waste of money. 

Peter
Peter from NSW replied to Casey:

We were never conned by the "free month". 

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