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NewsTell us: Are we Over-50s getting larger-than-average Premium Increases?
Tell us: Are we Over-50s getting larger-than-average Premium Increases?

Tell us: Are we Over-50s getting larger-than-average Premium Increases?

I’ve been waiting excitedly by my letterbox for notification from my health fund detailing my new premium cost (said no-one ever!) So it was with considerable trepidation that I opened the envelope when it arrived this week. My premium is increasing by 5.45%, considerably more than the 3.95% agreed to by Federal Health Minister Greg Hunt. But I’m not on my Pat Malone.
 
Despite the promise that everyone pays the same price for the same product in private health insurance, we believe that over 50’s generally will experience higher premiums increases than our younger counterparts.
 
We’ve seen it year after year, because over-50s generally take out the policies that are getting the biggest price rises.
 
One 79-year-old Queensland member was hit with a whopping 14.7% increase last year! So we’d like to hear from members again this year:

 

Click here to tell us your 2018 health premium increase.

 

Click here to shop around using the Club’s special offer with HCF, closing soon

 

We suspect that nothing much has changed from last year’s poll where you told us:
 

  • 65% of you 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 funds risk pushing over-50s out of private health care at a time when they need it most but there are some things you can do.
Here are a few ideas we’ve shared with members in the past:


Increase your excess: As with most insurances, you can often cut your premium by increasing your Excess. For Health Insurance, “an excess is an amount that you agree to pay towards the cost of hospital treatment, in exchange for lower premium costs”. The maximum excess allowed by the Federal Government is currently $1000 for families and $500 for singles.
 
Ask about contribution groups: You don’t need to be part of a business to enjoy the benefit of a ‘corporate discount’. There’s actually a very handy loophole in Health Insurance regulation that says Health Funds can offer “contribution group” discounts of up to 12% off the standard premium to defined groups of people, such as employees of a company or motoring club or other organisations.
 
Pay annually, by direct debit:  If you pay annually before April 1, when all health funds raise their Premiums, you pay the old price for the coming year and you effectively postpone the price rise for 12 months. While it’s not an option for everyone, it is worth considering.
 
If you have private health cover but you need surgery, be proactive and call your health fund BEFORE you have the surgery. It could save you thousands.

The Club has over 300,000 members, so we are able to negotiate a members' offer  on Health Insurance with HCF, the country's biggest not-for-profit Health Fund. 
 
Take a look if you haven’t already – only weeks to go before the April 1 deadline.


Click here to see the members’ offer from HCF
 

Click here to tell us your 2018 health premium increase.


 

Originally posted on .

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FiftyUp Club
Tell us: Are we Over-50s getting larger-than-average Premium Increases?

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Peter
Peter from NSW commented:

BUPA Basic Hospital Cover - 9.75% increase ($1790 to $1963 per annum). Here is the problem. Two items I specifically want and currently have cover for, will be removed from Basic Hospital Cover on 1 July 2018. If I want cover for those items, I am forced to upgrade to Top Hospital Cover ($3032 per annum). That is an increase of 88%. 

Robert
Robert from NSW commented:

Have just got a quote online on this website and rung HCF to confirm. Please note that the premiums quoted on the Fifty Up website do not include the price increase of approx. 4% applicable from 1 April. Go to the HCF website for a post 1 April quote. 

Garry
Garry from WA commented:

Gertraud, Perhaps these ads are because of the wroughts currently these various providers are allowed to use. This gives you the chance to check around. 

Gertraud
Gertraud from ACT commented:

When I joined the FiftyUp Club a few years ago, there were interesting articles to read with a lot of readers contributing to the discussion. Unfortunately, the "club" has deteriorated to be an advertising vehicle for insurances, electricity providers and NBN/telephone deals and very few members actually comment. 

Peter
Peter from NSW replied to Gertraud:

Wholeheartedly agree. the same bombardments each week. If an offer is not good enough one week, it wont be better the next week. 

Alfred M
Alfred M from QLD commented:

I did mention before that I am on the Top Plan with HCF and my wife and I are 82 years of age and we are covered for Pregnancy. I wish. I did write an email to HCF a week ago about this cover, unfortunately they do NOT have the courtesy to reply. Our premium goes up by $220.00 on April 1, 2018 

Robert
Robert from NSW replied to Alfred M:

Alfred M, Suggest you look for a provider with a plan that doesn't include IVF and pregnancy related issues. Your premium will drop appreciably. 

Alfred M
Alfred M from QLD replied to Robert:

I agree with you Robert, but where do you start, it seems a big job changing To another Fund. I regard to your other post, please remember that the Federal Government is also responsible for some of the increase. Until 2013 we were getting a 40% help from the Government, now that rebate will be down to 33.88% as from April 1, 2018. These reductions apply to all, including non pensioners who were getting 30% will now be down by almost 5%. so it is not all the fault of the funds. 

Robert
Robert from NSW replied to Alfred M:

Hi Alfred M, Once you've done your homework and found a better offer, changing to another fund is easy. And yes, the federal government subsidy has been decreasing, but only by a relatively small amount each year. Up until fairly recently, most if not all of the funds did not have an option which did not include pregnancy issues. Now they do. We used to be with Medibank Private, where the annual premium increases were in the order of around 6-7% EVERY year, So we changed funds to one which had an option tailored to our needs and saved heaps of money.. 

Robert
Robert from NSW replied to Robert:

I've just had a quick look at the current offer from HCF. You can choose an option where you aren't covered for pregnancy issues. You can select one of their packaged options or tailor make one to suit your needs. If you don't want to change funds, ring them. I'm sure they'll help. 

Alfred M
Alfred M from QLD replied to Robert:

Thank you Robert, I will check it with HCF. I did look at a couple of other companies, and they were dearer than HCF. 

Peter
Peter from NSW replied to Robert:

I have looked at several policies excluding pregnancy and the premium is about $200 per year cheaper than the same policy including pregnancy. Not a significant amount. 

Robert
Robert from NSW replied to Peter:

Hi Peter, $200pa saving on a $4000pa policy is 5% - not significant ? If you could get 5% off your electricity bill, would you take it ? 

Peter
Peter from NSW replied to Robert:

Hi Robert. I think you misinterpreted what I said. For my own circumstances (where I certainly do not need pregnancy and associated cover), the Hospital Only policies that I have looked at do not have an appreciable difference in their premiums. The cover I currently have with BUPA is excluding 2 items on 1 July 2018 for which I may/may not require cover (knee replacement and cataracts). If I want to keep those items covered, I am therefore forced to upgrade to a Top Hospital cover with BUPA (with no waiting period) which includes pregnancy and a whole list of other items which I consider unnecessary. I should also mention that I am on a Corporate policy which has been closed to new members. That is why I have looked at policies excluding pregnancy and determined that they are not really cheaper. 

Robert
Robert from NSW replied to Peter:

Hi Peter, No worries. Sounds like you need to switch to a fund where you can tailor-make your policy to suit your needs without having to include those things you will never use, cost a bomb and are very profitable for the funds. I'm going through a similar detailed exercise again now, 

Peter
Peter from NSW replied to Robert:

Hi Robert. I downgraded from Corporate Top Hospital last year because I did not need all the unnecessary items and was going to renew cover with BUPA this year until they told me they were excluding knee replacements, cataracts and a number of other procedures on my level of cover. This creates the necessity to return to Corporate Top Hospital where their only exclusion is Cosmetic Surgery (unless clinically necessary). However I am finding their Corporate Top Hospital policy is actually cheaper than nearly every other policy I have looked at, including those funds which allow you to exclude pregnancy. My problem is the 88% increase over last years premium. 

Marion
Marion from QLD commented:

My premium increase is over 7% I am with Medibank. I had a lot of claims in 2017 so am getting some of my money back. My husband is with Qld Country and got the same increase as me and has never made a claim 

Robert
Robert from NSW replied to Marion:

Hi Marion, Unfortunately with the private health insurance industry there is no discount for loyalty. and there is no "no claim bonus" if you don't claim. With my house and contents, and comprehensive motor vehicle insurance, I get both. I keep trying to find justification for the size of premium increases, but it's a well guarded secret. 

Member
Member from NSW commented:

My premium increase from Australian unity came in at 8.3% for Family cover with Platinum Extras I shopped around and got a better Hospital cover from NIB and core extras at a lower premium tailored to our needs. How can this be possible I saved $80/m in premium costs by switching Health Funds.Vish 

Greg
Greg from QLD commented:

13% again this year 

Robert
Robert from NSW commented:

For information........... we are a fairly healthy couple currently insured with NIB Advantage Hospital with Core Plus Extras. This year's premium increase is 4.66% up from $294pm to $308pm. A relatively low increase compared to previous years. Barely acceptable when the CPI, as in previous years, is 2-3%. And no, everyone does not pay the same price for the same product in private health insurance. The next Royal Commission should be into the private health insurance industry. 

Someone
Someone from QLD commented:

I rang had on Monday 12 th March and was told I would get a call back within one hour Still waiting 

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