Australians paying for their loyalty to health funds
How long have you been with your health fund?
When was the last time you reviewed your health insurance? Can't remember? Well, then you're part of the majority of Australians who stay with their health fund on average for 11.8 years.
A recent survey found that not only are Aussies sticking it out with their health fund for the better part of a dozen years but 22% of Australians have been with their fund so long that they can't remember when they got cover.
The data found that those from New South Wales were most loyal, with members willing to stay with their current fund for 13.3 years on average. At the other end of the spectrum was Queenslanders who switched funds on average every 8.9 years.
Unsurprisingly, gen Y were the least loyal group, who opted for a new fund every six years. While baby boomers were the most content, staying with their health funds for an average of 17 years.
A set-and-forget mindset for health insurance is especially concerning when you consider that health insurance premiums have gone up by roughly 50% since 2010, far outpacing wage growth or CPI.
We recently tracked which health fund's premiums had risen the most over the last decade, finding that Grand United Corporate Health had the lowest average increase (27.40%), which was half that of Railway & Transport Health Fund whose premiums had risen by 55.50% in the same space of time.
With premiums set to rise on average by 4.84% in on 1 April 2017, why not compare your options and lock in your premiums by 31 March? You may even find a fund that will give you a further discount of between 2% and 4% for paying your premiums upfront or for setting up a direct debit for your premiums.
You may also want to check out the deals on offer from various funds to see how they are trying to entice you to switch health insurers in March.