How to lock in 2021 health insurance prices until 2024
You can avoid the annual health insurance price increase in April with this simple 2-step process.
As always, health insurance premiums are set to go up again this year with most funds introducing their annual price increase in April 2022.
But there's a way to avoid the price increase until at least 2023, or in one case, as late as 2024. Here's what you do.
Join a health fund that has deferred the April 2022 premium hike
In response to the COVID-19 pandemic, many health funds are delaying the usual April 1st price hike to later in the year. This means you can pay today's lower rate for longer.
The longest deferral is HCF. If you're with the not-for-profit health fund, its premiums won't increase until 1 November 2022. They will go up by 2.72%.
Teacher's Health, UniHealth and Nurses & Midwives Health are delaying until 1 October 2022 and will go up 2.7%.
Medibank and ahm aren't increasing prices until 1 September 2022 when prices will go up 3.10%. nib will also defer its increase until September when it will go up 2.66%.
Pre-pay your premium for 12-18 months just before the 2022 premium increase
Do this the day before your fund plans to increase its premiums and you could lock in 2021 prices until at least 2023. Here is how long the health funds listed above may allow you to pre-pay for:
- HCF: 18 months
- nib: 13 months
- Medibank: 12 months
- ahm: 12 months
- Teacher's Health: 12 months
- UniHealth: 12 months
- Nurses & Midwives Health: 12 months
HCF comes out on top here. If you go with it, you could lock in 2021 prices until as late as April 2024.
You will want to give your health fund enough time to process your pre-payment. To be safe, make your advance payment a few weeks before the date that prices are set to increase.
