How much are you paying for health insurance?
Not sure? You're not alone: 1 in 5 Aussies don’t know what they pay for health cover.
How much do you pay for your health insurance per month? It's a simple enough question but it seems that Australians know very little when it comes to how much they are forking over to their health fund.
A recent survey found one in five Aussies are clueless as to what they're paying for private health cover.
The Australian Prudential Regulation Authority's (APRA) Operations of Private Health Insurers Annual Report 2015/16 reveals 13.4 million Australians have hospital or general (extras) health insurance. If the survey data is true, this means almost 2.7 million Aussies are paying for cover without knowing the costs.
This is especially troubling when you consider health insurance premiums are rising by an industry weighted average of 4.84% this year and have risen, on average, 44.8% since 2010. If you took a set and forget approach to health insurance, getting combined hospital and extras cover in 2010 for $165, you could be paying over $255 for that same policy this year and not even know it.
Health insurance premiums have risen at a faster rate than wage growth and inflation, which is why it's important to take advantage of any price breaks you can.
At this time of year, one popular tactic is to review your cover and switch to a new fund before premiums increase on 1 April 2017. If you pay your premiums up front, not only will you be able to lock them in at the previous year's rate but you may also save a further 4% as some funds offer annual payment discounts.
Want to beat the price hike?
Compare your options online and review policies from 30+ funds in Australia.