Private Health Insurance: What’s the Point?

4 min read
Private Health Insurance: What’s the Point?

What is the Point in Taking Out Health Insurance?

April 1st is just around the corner, which means some health insurance premiums are about to go up. Ouch! We hear you, and we’re sorry to be the bearer of some bad news. And for those whose premiums don’t increase come April, they could still be stung later this year as some funds defer their annual hike. 

Bigger bills are the last thing struggling families need, especially when household budgets are under increased pressure. It’s no wonder you might be thinking ‘What’s the point of private health insurance?

Well, let’s break it down before you decide to ditch your cover completely. 

What's the Point in Health Insurance

1. Peace of Mind

As a mum, can you really put a price on peace of mind? Life is unpredictable, so knowing that you and your loved ones will have greater choice in the event of a serious health issue is no doubt comforting. 

There can be out-of-pocket costs on top of the Medicare Benefits Schedule (MBS) when you’re admitted privately to the hospital, but without hospital cover, you are more likely to be up for a hefty bill if you need to use the private system if an unfortunate event occurs. 

2. Elective Surgery Wait Times 

Not only can hospital cover give you more choice over where you and your family will be treated, it can also mean shorter waiting times for elective surgery. Elective surgery can include things like the removal of tonsils and wisdom teeth, or knee and hip replacements. 

You may have heard elective surgery wait times are continuing to blow out due to the COVID-19 backlog, so you or your family could be in for a lengthy wait if you need treatment! Can you really afford to wait around? Think about how this might affect your household income if your health issue was to prevent you from working.

3. Greater Choice

If continuity of care is important to you and your loved ones, having private health insurance could be well worth it. That’s because you can choose your doctor and specialist as a private patient in a participating hospital. For example, if you’re going to have another baby, you may value the reassurance of using the services of an obstetrician you know and trust. 

4. Extras cover 

Before ditching your private health cover, think about ways you could save. Are Extras worth paying for? Well, they sure are if you’re using them. If the sound of your 9-year-old breaking their glasses yet again is all too familiar, or you’re making regular trips to the dentist, appropriate Extras cover can help with these costs that are generally not covered by Medicare. If you’re not using your Extras, you could consider hospital-only cover that may make your premium cheaper.

5. Time to review 

In these trying times, the thought of ditching your private health cover could be tempting to cut back on your household bills, especially as some premiums start rising from April 1st! But it’s important to remember that simply shopping around and reviewing your cover could save you some money. 

We know, you’re probably thinking ‘What mum has time to shop around for health insurance when we’ve got so many balls in the air already?’ Shopping around doesn’t have to be hard or time-consuming!

A health insurance comparison service like iSelect can help you try to find a suitable level of cover for you and your family from their range of policies and funds.* And if you do decide to switch, they’ll help you take care of the whole process, saving you time and effort. 


*iSelect does not compare all health insurance providers or policies in the market. The availability of policies will change from time to time. Not all policies available from its providers are compared by iSelect and due to commercial arrangements, your stated needs and circumstances, not all policies compared by iSelect are available to all customers. Some policies and special offers are available only from iSelect’s contact centre or website. Click here to view iSelect’s range of providers.

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Sophie Ryan

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