How to save on your private health insurance

Private health insurance can be a costly expense, especially when you’re constantly battling the rising cost of living. We've put together a few simple strategies that can help save you money without compromising on your health cover.

Whether you’re a long-time policyholder or looking to switch to a better health fund, we’ve got 15 easy-to-implement tips to reduce your private health insurance costs.

It’s important that you take the time to review your health insurance policy every year – yes, every year – to make sure it’s still meeting your needs. Life changes like getting married or having kids can have a bigger impact on your healthcare requirements than you might think. Comparing health insurance and reassessing your cover annually means you can get rid of unnecessary extras and ensure you’re not paying for services you don’t need.

Raising your excess – the amount you pay out-of-pocket when making a claim – can greatly reduce your premiums, especially over the life of the policy. While this means you’ll pay more upfront for medical services, it can mean big savings on your monthly or annual premiums. Make sure to choose an excess amount that you can comfortably afford in case of a claim.

Similar to increasing your excess, choosing a higher hospital co-payment can make your premiums cheaper. A co-payment is a fixed amount you pay each day you are in the hospital. By agreeing to a higher co-payment, your insurer might be able to lower your premiums. This is a good option if you don’t expect to be visiting the hospital very often.

The Australian government has a handy private health insurance rebate to help cover the cost of your premiums. The rebate is income-tested, which means the amount you receive depends on your income and age. Just make sure you’re eligible for the rebate and follow all the rules when it comes time to claim it.

Paying your health insurance premiums once a year rather than every month can lead to discounts from some insurers. This is because it reduces the administrative cost on their end. Check with your provider to see if they have discounts for annual payments and take advantage of any potential savings.

Many health insurers will give you a discount if you combine hospital and extras cover into one policy. Bundling these services not only simplifies how you manage your insurance, but can also mean bigger overall savings and better health cover for your future. Compare different combined policies to find the best deal for your needs.

Setting up direct debit payments can sometimes attract discounts on your premiums. Insurers prefer this method as it guarantees faster payments and reduces the administrative workload. Check with your insurer to see if they have any incentives for choosing direct debit over other payment types.

Regularly comparing health insurance policies from multiple health funds can help you find better deals. Use online comparison tools to see what other insurers are offering right now – even a small difference in premiums or benefits could lead to huge savings over time.

If you’re planning an extended holiday overseas or a period where you won’t need your health insurance, check if your insurer will let you suspend your cover. This means you won’t be paying premiums during the times you don’t need the cover, with the ability to resume the policy when you get home or need to start it up again.

Some insurers have discounts or rewards programs for policyholders who maintain a healthy lifestyle. Participating in wellness programs, quitting smoking and doing regular physical exercise can not only improve your health and mental wellbeing, but also lower your premiums – a win-win!

Consider joining a restricted health fund if you’re eligible. These funds are often industry-specific and can mean lower premiums and better benefits than open funds. Eligibility is typically based on your occupation or membership in certain organisations, so explore your options.

Check to see if there are any government or business discounts you could be eligible for. Some insurers give discounts to employees of certain companies/industries or members of specific associations. It can’t hurt to ask!

Some insurers give their most loyal customers discounts, especially if they’ve been with the same fund for a long period of time. If you've been with the same insurer for years and years, enquire about any loyalty discounts they might be able to offer you.

If you have a partner and/or kids, consider switching to a family health insurance policy instead of individual plans for each member of your household. Family policies are usually more cost-effective and can give you better coverage overall.

Don’t be afraid to negotiate with your insurer. If you find a better deal with another fund, speak to your current provider and mention that you’re considering switching. They might be able to match or even beat the competitor’s price to keep your business.

Saving on private health insurance isn’t impossible – it just takes a little time and effort on your part. With these tips in hand and by regularly comparing health insurance policies, you’ll be enjoying better deals and saving more money in no time.