Lets face it, Private Health Insurance is expensive.  There is no getting around that fact. But once you have a little ones and you don’t have to worry about just yourself anymore, it is option many families look into for the ‘just in case’ factor.  Here is how to shop around, get the best deal and explain some of the more trickier aspects of Private Health Insurance.

Getting the Best Deal on Health Insurance

There are literally hundreds of Private Health Insurers around now, so it is important to shop around and find the best deal that suits your own family circumstances.  My top tips for getting the best deal:

1. Go with a reputable company.  There are many smaller insurance agencies around now, but will they still be around in a few years time?
2. Ask your friends and family who they are with, and how their experiences have been.
3. Customer Service.  Can you ring them anytime to ask a question or query a claim?
4. Avoid going through second party websites.  Many of these sites leave out some of the larger insurers so you aren’t necessary getting the best deal.
5. Check out websites such as Canstar - who are totally independent and give star ratings comparing the different funds.  They just listed the top three best Health Insurance Agencies in Australia which were Bupa, HCF and Medibank Private.

Deciding on What Your Family Needs:

Most Private Health Policies have a few different levels of cover and it’s important to get that level of cover right according to your circumstances and budget.  For example you don’t need family cover if your single.  When you are a couple expanding your family- well that is a different cover again. As well as the basic hospital cover all health insurance providers have, there is also ‘Extra’s cover which covers things like physiotherapy, dental, orthodontics, Optical and some have a ‘living well’ cover which will contribute towards your gym memberships, weight management programs and pilates classes (hooray!).

A brief and basic explanation of the covers are:

Hospital:

Covers your cost as a private patient in hospital including hospital accommodation, medical treatment and ambulance.

Extra’s Cover:

See above!

A Combination of Hospital and Extra’s Cover

A combination of both hospital cover and extra’s cover in a package.  Many are not available as stand alone products.

There is a Budget Family Cover policy I have seen from Bupa that is actually designed for families with kids that aren’t planning on having any more which is great to see.  It includes gap free kids dental, optical and physio!  No point paying extra for things like pregnancy if you no longer need it but it still covers a family for all the things families need and includes a $100 yearly top-up bonus towards any out-of-pocket expenses.

Understanding the Medicare Levy Surcharge:

The Medicare Levy Surcharge is a tax applied to individuals or families that do NOT have private health cover and earn above a certain amount.  The tax is generally from 1 – 1.5% of your taxable income.  The tax does not affect singles earning $84,000 per year and less, or families that earn a combined income of $168,000 or less. For more information on the Medicare Levy – click here.

Government Rebate on Private Health Insurance

The Australian Government offers a rebate to people that have Private Health Cover to encourage people to have insurance and to make it more affordable.  The rebate is calculated on the age of the oldest person on the policy as is anywhere between 30% and 40% of the cost of the private health insurance premiums.  You must be eligible for Medicare to be able to claim the rebate.

So I hope I have helped you out to find the best deal.  As you can see there is a lot of information out there, but do your homework and find what is affordable for your family!

“Please note that Bupa is an advertising partner on my website.”