Compare the Market’s Economic Director David Koch is encouraging the millions of Australians with private health insurance to weigh up their options before proposed price changes on 1 April, saying a little-known hack could help them save big and turn back the clock on premiums.
By paying your premium 12 months in advance before the changes come into effect on 1 April you can delay 2026’s any potential premium increase and lock in 2025 prices.
“Cher had the right idea when she asked if she could turn back time, and thankfully, there is a way when it comes to your health insurance premiums,” Mr Koch said.
“And with experts predicting this year’s hike could be one of the biggest we’ve seen in a long time, it’s a move that could save you serious cash.”
Compare the Market analysis shows that an increase of 4-5% would add $105.60-$132 to an average hospital policy of $2,641. That’s money better left in your pocket.
“If your budget allows it, you may be able to find a health insurer that lets you pay for your policy at least 12 months in advance, effectively securing the pre-rate-hike price and locking in cheaper premiums,” Mr Koch said.
@comparethemarketau Cher 🤝 Health Insurance It might seem to be an unlikely pairing, but they do have something in common… Watch the video to find out! How to get cheaper and better value health insurance Your premiums will also be influenced by your eligibility for an age-based discount, the Australian Government’s rebate and if a Lifetime health cover (LHC) loading applies. – Age-based discount. Some insurers will offer an age-based discount of up to 10% if you take out a policy before you turn 26. The discount you may be entitled to is reduced by 2% for each year after the age of 25 that you don’t take out a policy. By holding continuous hospital cover with a policy that lets you retain your aged-based discount, you can enjoy the discount until the age of 41. From the age of 41, the discount is phased out by 2% each year until it reaches zero. – Government rebate. If you qualify, the Australian Government’s private health insurance rebate helps reduce the cost of your premiums depending on your age and income. For example, if you qualify for the highest tier of the rebate, you can potentially receive a premium refund of 32.385%. – LHC loading. If you don’t take out hospital insurance before the 1st of July following your 31st birthday, you may have to pay an increased premium due to the LHC loading. This is to encourage Australians to take out a hospital insurance policy earlier in life to reduce the strain on the public system. Compare private health insurance now with Compare the Market. #SmartChoices #savings #Budget #PersonalFinance
Mr Koch encouraged anyone looking to take advantage of the ‘price hike rewind hack’ to get in early before any deadlines and cut-off dates.
“The lead up to 1 April is generally a busy time and you’ve got to ensure that your payment is processed well before the price hike comes into effect, which is typically on 1 April,” Mr Koch said. “You want to give yourself enough wiggle room to get in before any deadlines. Keep a close eye on correspondence from your health insurer and contact them to better understand their cut-off dates so you don’t miss out.
“While it can be a high upfront cost, it could save you money in the long run because you wouldn’t need to pay the higher 2026 premiums until 2027 when the next premium changes are announced.
“But keep in mind that by effectively delaying the rate increase by paying annually up front, you could be hit with a double-rise down the track, depending on your policy, if you decided not to pay annually in the future.”
Mr Koch said anyone who receives a premium increase notice from their insurer should be putting their health insurance costs under the microscope.
“Never accept a premium hike lying down,” Mr Koch said. “Shop around and see if you can find similar cover for less or switch to a more suitable level of cover that could reduce your spending. Always weigh up your health needs first and go from there.
“Also keep an eye out for the perks and incentives on offer. Health insurers roll out the red carpet to attract new business at this time of year. Keep your eyes peeled for perks like gift cards, weeks free, waived waiting periods and more. All these can certainly sweeten the deal; just make sure you’re matching these benefits with a competitive premium and policy. Don’t get sucked in by a sugar hit – look for value that stands the test of time.”
For more information, please contact:
Phillip Portman | 0437 384 471 | [email protected]
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