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Rise in insurance premiums set to devastate Aussies

Australians struggling with the cost of living are set to be hit with another blow to their wallets as health insurance premiums rise. Coming into effect on April 1st, private health insurance premiums are set to rise by more than 3 per cent, in the biggest increase in five years. The federal government has approved an average industry premium rise of 3.03 per cent, which will impact 14 million Australians paying for private health cover. The 2024 increase is slightly higher than a rise of 2.9 per cent in 2023, and 2.7 per cent in 2022 and 2021. In 2019, premiums rose by 3.3 per cent, making the 2024 rise the biggest in five years. Health Minister Mark Butler said the rise was smaller than the increase in wages, the age pension and inflation. “I wasn’t prepared to just tick and flick the claims of health insurers, as the opposition asked me to do,” Butler said. “I asked insurers to go back and sharpen their pencils and put forward a more reasonable offer for the 15 million Australians with private health insurance.” “Private health insurers must ensure their members are getting value for money,” Butler said. “When costs rise, Australians want to know that higher premiums are contributing to system-wide improvements like higher wages for nurses and other health workers and ensuring that affordable services are available.” Image credits: Getty Images

Money & Banking

The types of insurance that aren’t worth your while

While it’s important to make sure you’ve been covered, some forms of insurance aren’t really worth your while in the long run. We’ve taken a look at several types of insurance you shouldn’t really bother with, why they’re not worth your money and how you can find an alternative. Yes, it’s essential to make sure you’re covered, but at the same time you don’t need to waste any money. Extended warranties Many a salesperson has made a customer fork out that little bit extra for an “extended warranty” to go with a major electronic purchase. The thing is though, in many cases the period of time covered by the warranty is actually exactly the level you’re automatically entitled to under consumer law. Credit protection insurance While this type of insurance can be useful and a way to insure yourself against the possibility of something happening to your income as the result of an injury or a condition, credit protection insurance has tendency to be pretty expensive. A more cost effective way to ensure your payments to your credit card, personal loans or mortgages are fulfilled would be to take out a life insurance or total and permanent disability insurance policy through your individual superannuation fund. Funeral insurance Many people see this as a good way to ease the financial burden on their family that comes with their passing, but in reality funeral insurance is quite expensive and the premiums add up every year. A far better option is a prepaid funeral, funeral bonds life insurance or even a special savings account with money set aside. Just make sure you let your family know! ID theft insurance This is one of those types of insurance that isn’t really protecting your from becoming a victim, rather helping you deal with the costs once it’s already happened. And what’s more, you bank is usually willing to cover the costs of credit card fraud, which is one of the major problems to be associated with ID theft. Instead of spending money on a policy you can protect yourself from ID theft by simply keeping your personal documents safe, shredding documents such as bank account statements before throwing them away, and using antivirus software that is up to date. You can also check your credit file each year to make sure nobody’s using your identity for fake accounts. Image credits: Getty Images

Money & Banking

Who really benefits from private health insurance rebates? Not people who need cover the most

<a href="https://theconversation.com/profiles/yuting-zhang-1144393">Yuting Zhang</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a>; <a href="https://theconversation.com/profiles/judith-liu-1467052">Judith Liu</a>, <a href="https://theconversation.com/institutions/university-of-oklahoma-1896">University of Oklahoma</a>, and <a href="https://theconversation.com/profiles/nathan-kettlewell-903866">Nathan Kettlewell</a>, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> The Australian government spends <a href="https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/delivering-australias-lowest-private-health-insurance-premium-change-in-21-years">A$6.7 billion a year</a> on private health insurance rebates. These <a href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Private-health-insurance-rebate/">rebates</a> are the government’s contribution towards the costs of individuals’ premiums. But our <a href="https://doi.org/10.1002/hec.4751">analysis</a> shows higher rebates for people aged 65 and older are not doing much to encourage them to sign up for private hospital cover, the very group who may benefit the most from it. This and <a href="https://doi.org/10.1080/13504851.2017.1299094">other research</a> point to these rebates largely going to people on higher incomes, ones who’d be more likely to buy private health insurance anyway. <h2>Remind me, what are these rebates?</h2> In <a href="https://www.abs.gov.au/ausstats/abs@.nsf/2f762f95845417aeca25706c00834efa/0aaf3311ebcd3646ca2570ec000c46e4!OpenDocument#:%7E:text=The%20Federal%20Government%2030%25%20Rebate,the%20means%2Dtested%20PHIIS%20rebate.">1999</a>, the Australian government introduced the private health insurance rebate. Initially, the rebate meant the government paid 30% of the cost of private health insurance for everyone, regardless of income or age. Then in 2005, the Howard government increased the rebate rate to 35% for those aged 65-69 and to 40% for those aged 70 and older, regardless of how much they earned. Over time, the rebate rates have decreased slightly and now depend on both income and age. However, the higher discount for older people has always remained. We wanted to understand whether the higher rebates for older people actually encourage them to buy private health insurance. So we looked at data from more than 300,000 people who filed tax returns over more than a decade (2001-2012). We then compared the trends in insurance coverage of people younger than 65 and older than 65, before and after the 2005 rebate policy change. <h2>What we found</h2> We found higher rebates led to a modest and short-term increase in private health insurance take-up. We estimated that lowering premium prices by 10% through higher rebates would only result in 1-2% more people aged 65 and older buying private health insurance in the next two years. This means higher rebates for older people are a very expensive way to get them to insure. People aged 65-74 with income in the bottom 25% of earners were the most likely to buy insurance in response to higher rebates that reduced premium prices. That’s an income under $21,848 in today’s money (income increased to 2023 dollar amount, in line with the <a href="https://www.ato.gov.au/rates/consumer-price-index">consumer price index</a>). <h2>What do we propose?</h2> Our findings suggest a more targeted subsidy program would be a more effective way to increase private health insurance. To achieve this, we recommend lowering income thresholds for rebates to target people of all ages on genuinely low incomes. Currently, people earning as much as $144,000 (singles) or $288,000 (families) can receive rebates. Other evidence to back our proposal comes from <a href="https://melbourneinstitute.unimelb.edu.au/publications/working-papers/search/result?paper=4682822">research</a> released earlier this year. This suggests higher income earners are likely to buy private insurance regardless of rebates. A recent <a href="https://consultations.health.gov.au/medical-benefits-division/consultation-on-phi-studies">consultation report</a> commissioned by the federal health department reviewed a range of health insurance incentives. The <a href="https://consultations.health.gov.au/medical-benefits-division/consultation-on-phi-studies/supporting_documents/Finity%20Consulting%20MLS%20and%20PHI%20Rebate%20Final%20Report.pdf">report</a> recommends removing rebates for those with income higher than $108,000 for singles and $216,000 for families (we recommend removing them at $93,000 for singles and $186,000 for families). The report also recommends increasing rebates for those older than 65 (we believe income, rather than age, is a better marker of someone’s means). <h2>Are rebates good value for money?</h2> We also need to look at whether rebates provide value for money more broadly, and across all ages. <a href="https://grattan.edu.au/wp-content/uploads/2019/12/926-Saving-Health-2.pdf">Existing evidence</a> shows a 10% decrease in premiums due to rebates only leads to a 3.5-5% increase in private health insurance take-up among all Australians. We show this is only <a href="https://doi.org/10.1002/hec.4751">1-2%</a> for people over 65. So rebates are likely to <a href="https://doi.org/10.1016/j.jhealeco.2013.11.007">cost taxpayers more</a> than they generate in savings, and are largely windfalls to those who would privately insure anyway, often those who are financially better off. <h2>What happens if we scrapped the rebates?</h2> It is uncertain how many people would drop private cover if the rebate was removed. But based on research from when the rebate was introduced, the rebate might account for a maximum <a href="https://escholarship.org/content/qt6j47s8kq/qt6j47s8kq_noSplash_be059196ed2d70b94486039f64452494.pdf">10-15 percentage points</a> of the overall take-up rate. Other research suggests it might be much less than this, closer to <a href="https://www.sciencedirect.com/science/article/pii/S016762961300163X?casa_token=C-SdG98Jc2UAAAAA:KJLHBZ2BJhq9wRQQKUbEWPiqoeza1DEi3mZ9Y6O2GereVX1L1x0cJumVgrqBeMGa1ygDjFrPG7T5">2 percentage points</a>. In other words, the rebate only appears to influence a small percentage of people to buy private health insurance. So scrapping it would likely have a similarly small effect. Then there’s the impact of scrapping the rebate, people dropping their cover and putting more pressure on the public system. Earlier this year, we found private health insurance had <a href="https://theconversation.com/does-private-health-insurance-cut-public-hospital-waiting-lists-we-found-it-barely-makes-a-dent-211680">minimal impact</a> on reducing waiting times for surgery in Victorian public hospitals. So scrapping the rebate might have minimal impact on waiting lists. Taken together, the billions of dollars a year the government spends to subsidise private health insurance via rebates might be better directed to public hospitals and other high-value care, including primary care and preventive care.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/212611/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/yuting-zhang-1144393">Yuting Zhang</a>, Professor of Health Economics, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a>; <a href="https://theconversation.com/profiles/judith-liu-1467052">Judith Liu</a>, Assistant Professor of Economics, <a href="https://theconversation.com/institutions/university-of-oklahoma-1896">University of Oklahoma</a>, and <a href="https://theconversation.com/profiles/nathan-kettlewell-903866">Nathan Kettlewell</a>, Chancellor's Research Fellow, Economics Discipline Group, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/who-really-benefits-from-private-health-insurance-rebates-not-people-who-need-cover-the-most-212611">original article</a>.

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Does private health insurance cut public hospital waiting lists? We found it barely makes a dent

<a href="https://theconversation.com/profiles/yuting-zhang-1144393">Yuting Zhang</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a>; <a href="https://theconversation.com/profiles/jongsay-yong-10803">Jongsay Yong</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a>, and <a href="https://theconversation.com/profiles/ou-yang-937801">Ou Yang</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> The more people take up private health insurance, the <a href="https://www.aph.gov.au/parliamentary_business/committees/senate/community_affairs/completed_inquiries/1999-02/pubhosp/report/c05">less pressure</a> on the public hospital system, including <a href="https://www.privatehealthcareaustralia.org.au/australians-sign-up-to-private-health-insurance-in-record-numbers-to-avoid-hospital-waiting-lists/#:%7E:text=%22Private%20health%20insurance%20is%20the,and%20keep%20pressure%20off%20premiums.">shorter waiting lists</a> for surgery. That’s one of the key messages we’ve been hearing from government and the private health insurance industry in recent years. Governments <a href="https://www.privatehealth.gov.au/health_insurance/surcharges_incentives/index.htm">encourage us</a> to buy private hospital cover. They tempt us with carrots – for instance, with subsidised <a href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Private-health-insurance-rebate/">premiums</a>. With higher-income earners, the government uses sticks – buy private cover or pay the <a href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Medicare-levy-surcharge/">Medicare Levy Surcharge</a>. These are just some of the <a href="https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/delivering-australias-lowest-private-health-insurance-premium-change-in-21-years#:%7E:text=Home-,Delivering%20Australia's%20lowest%20private%20health%20insurance%20premium%20change%20in%2021,be%202.70%20percent%20in%202022">billion-dollar strategies</a> aimed to shift more of us who can afford it into the private system. But what if private health insurance doesn’t have any meaningful impact on public hospital waiting lists after all? That’s what we found in our <a href="https://melbourneinstitute.unimelb.edu.au/publications/working-papers/search/result?paper=4721936">recent research</a>. Our analysis suggests if an extra 65,000 people buy private health insurance, public hospital waiting lists barely shift from the average 69 days. Waiting lists are an average just eight hours shorter. In other words, we’ve used hospital admission and waiting-list data to show private health insurance doesn’t make much difference. <h2>What we did</h2> Our <a href="https://melbourneinstitute.unimelb.edu.au/publications/working-papers/search/result?paper=4721936">work</a> looked at data from 2014-2018 on hospital admissions and waiting lists for elective surgery in Victoria. The data covered all Victorians who were admitted as an inpatient in all hospitals in the state (both public and private) and those registered on the waiting list for elective surgeries in the state’s public hospitals. That included waiting times for surgeries where people are admitted to public hospitals (as an inpatient). We didn’t include people waiting to see specialist doctors as an outpatient. The data was linked at the patient level, meaning we could track what happened to individuals on the waiting list. We then examined the impact of more people buying private health insurance on waiting times for surgeries in the state’s public hospitals. We did this by looking at the uptake of private health insurance in different areas of Victoria, according to socioeconomic status. After adjusting for patient characteristics that may affect waiting times, these differences in insurance uptake allowed us to identify how this changed waiting times. <h2>What we found</h2> In our sample, on average <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0005/4721936/wp2023n09.pdf">44% of people</a> in Victoria had private health insurance. This is close to the national average of <a href="https://www.apra.gov.au/private-health-insurance-annual-coverage-survey">45%</a>. We found that increasing the average private health insurance take-up from 44% to 45% in Victoria would reduce waiting times in public hospitals by an average 0.34 days (or about eight hours). This increase of one percentage point is equivalent to 65,000 more people in Victoria (based on <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/3101.0Main+Features1Jun%202018?OpenDocument">2018 population data</a>) taking up (and using) private health insurance. The effects vary slightly by surgical specialty. For instance, private health insurance made a bigger reduction to waiting times for knee replacements, than for cancer surgery, compared to the average. But again, the difference only came down to a few hours. Someone’s age also made a slight difference, but again by only a few hours compared to the average wait. Given the common situation facing public and private hospitals across all states and territories, and similar private health insurance take-up in many states, our findings are likely to apply outside Victoria. <h2>Why doesn’t it reduce waiting lists?</h2> While our research did not address this directly, there may be several reasons why private health insurance does not free up resources in the public system to reduce waiting lists: <ul> <li> people might buy health insurance and not use it, preferring to have free treatment in the public system rather than risk out-of-pocket costs in the private system </li> <li> specialists may not be willing to spend more time in the public system, instead <a href="https://onlinelibrary.wiley.com/doi/epdf/10.1111/1753-6405.12488">favouring working</a> in private hospitals </li> <li> there’s a growing need for public hospital services that may not be available in the private system, such as complex neurosurgery and some forms of cancer treatment. </li> </ul> <h2>Why is this important?</h2> Government <a href="https://www.privatehealth.gov.au/health_insurance/surcharges_incentives/index.htm">policies</a> designed to get more of us to buy private health insurance involve a significant sum of public spending. Each year, the Australian government spends about <a href="https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/delivering-australias-lowest-private-health-insurance-premium-change-in-21-years#:%7E:text=Home-,Delivering%20Australia's%20lowest%20private%20health%20insurance%20premium%20change%20in%2021,be%202.70%20percent%20in%202022">$A6.7 billion</a> in private health insurance rebates to reduce premiums. In the 2020-21 financial year, Medicare combined with state and territory government expenditure provided almost <a href="https://www.aihw.gov.au/reports/hospitals/australias-hospitals-at-a-glance/contents/spending-on-hospitals">$6.1 billion</a> to fund services provided in private hospitals. There might be an argument for this public spending if the end result was to substantially take pressure off public hospitals and thereby reduce waiting times for treatment in public hospitals. But the considerable effort it takes to encourage more people to sign up for private health insurance, coupled with the small effect on waiting lists we’ve shown, means this strategy is neither practical nor effective. Given the substantial costs of subsidising private health insurance and private hospitals, public money might be better directed to public hospitals and primary care. In addition, people buying private health insurance can skip the waiting times for elective surgery to receive speedier care. These people are often <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0005/4682822/wp2023n08.pdf">financially well off</a>, implying unequal access to health care. <h2>What’s next?</h2> The Australian government is currently <a href="https://consultations.health.gov.au/medical-benefits-division/consultation-on-phi-studies/">reviewing</a> private health insurance. So now is a good time for reforms to optimise the overall efficiency of the health-care system (both public and private) and improve population health while saving taxpayer money. We also need policies to ensure equitable access to care as a priority. When it comes to reducing hospital waiting lists, we’ve shown we cannot rely on increased rates of private health insurance coverage to do the heavy lifting.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/211680/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/yuting-zhang-1144393">Yuting Zhang</a>, Professor of Health Economics, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a>; <a href="https://theconversation.com/profiles/jongsay-yong-10803">Jongsay Yong</a>, Associate Professor of Economics, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a>, and <a href="https://theconversation.com/profiles/ou-yang-937801">Ou Yang</a>, Senior Research Fellow, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/does-private-health-insurance-cut-public-hospital-waiting-lists-we-found-it-barely-makes-a-dent-211680">original article</a>.

Money & Banking

Private health insurance is set for a shake-up. But asking people to pay more for policies they don’t want isn’t the answer

<a href="https://theconversation.com/profiles/yuting-zhang-1144393">Yuting Zhang</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> and <a href="https://theconversation.com/profiles/nathan-kettlewell-903866">Nathan Kettlewell</a>, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> Private health insurance is <a href="https://consultations.health.gov.au/medical-benefits-division/consultation-on-phi-studies/">under review</a>, with proposals to overhaul everything from rebates to tax penalty rules. One <a href="https://consultations.health.gov.au/medical-benefits-division/consultation-on-phi-studies/supporting_documents/Finity%20Consulting%20MLS%20and%20PHI%20Rebate%20Final%20Report.pdf">proposal</a> is for higher-income earners who don’t have private health insurance to pay a larger <a href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Medicare-levy-surcharge/">Medicare Levy Surcharge</a> – an increase from 1.25% or 1.5%, to 2%. And if they want to avoid that surcharge, they’d need to take out higher-level hospital cover than currently required. Encouraging more people to take up private health insurance like this might seem a good way to take pressure off the public hospital system. But <a href="https://melbourneinstitute.unimelb.edu.au/publications/working-papers/search/result?paper=4682822">our research</a> shows these proposals may not achieve this. These may also be especially punitive for people with little to gain from buying private health insurance, such as younger people and those living in regional areas who do not have access to private hospitals. <h2>What is the Medicare Levy Surcharge?</h2> The Medicare Levy Surcharge was <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/FlagPost/2013/May/A_short_history_of_increases_to_the_Medicare_levy#:%7E:text=From%20July%201997%2C%20a%20surcharge,ancillary%20insurance%20cover%20was%20introduced">introduced in 1997</a> to encourage high-income earners to buy health insurance. People earning above the relevant thresholds need to buy “complying” health insurance, or pay the levy. This surcharge is in addition to the <a href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Medicare-levy/">Medicare levy</a>, which applies to most taxpayers. The surcharge varies depending on your income bracket, and the rate is <a href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Medicare-levy-surcharge/Medicare-levy-surcharge-income,-thresholds-and-rates/">different</a> for families. For instance, to avoid paying the surcharge currently, a single person living in Victoria earning A$108,001 can buy basic hospital cover. The lowest annual premium for someone under 65 is <a href="https://www.privatehealth.gov.au/dynamic/Search/">about $1,100</a>, after rebates. That varies slightly between states and territories. Not buying private health insurance and paying the Medicare Levy Surcharge instead would cost even more, at $1,350 (1.25% of $108,001). <h2>What is being proposed?</h2> The <a href="https://consultations.health.gov.au/medical-benefits-division/consultation-on-phi-studies/">report</a>, by Finity Consulting and commissioned by the federal health department, reviews a range of health insurance incentives. It recommends increasing the Medicare Levy Surcharge to 2% for those with an income above $108,001 for singles, and $216,001 for families. The definition of a “complying” private health insurance policy would also change. Rather than having basic hospital cover as is required now, someone would need to buy <a href="https://www.health.gov.au/resources/publications/private-health-insurance-reforms-gold-silver-bronze-basic-product-tiers-campaign-fact-sheet?language=en">silver or gold</a> cover to avoid the surcharge. Under the proposed changes, people who pay the 2% surcharge would also no longer receive any rebate, which currently reduces premiums by <a href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Private-health-insurance-rebate/Income-thresholds-and-rates-for-the-private-health-insurance-rebate/#Rebaterates1">about 8%</a> for people earning $108,001-$144,000. So, for a single person under 65, earning $108,001 and living in Victoria, the <a href="https://www.privatehealth.gov.au/dynamic/Search/">annual cost of buying</a> complying hospital cover would be at least $1,904 (without the rebate). Again, that varies slightly between states and territories. But the cost of not insuring and paying the Medicare Levy Surcharge instead would go up to $2,160 (2% of $108,001). <h2>Is this a good idea?</h2> However, <a href="https://melbourneinstitute.unimelb.edu.au/publications/working-papers/search/result?paper=4682822">our research</a>, out earlier this year, suggests increasing the Medicare Levy Surcharge will not meaningfully increase take-up of private health insurance. We’ve shown that people do not respond as strongly to the surcharge as theory would predict. For example, when the surcharge kicks in, we found the probability of insuring only increases modestly from about 70% to 73% for singles, and about 90% to 91% for families. It is generally cheaper to buy private health insurance than to pay the surcharge. However, we found about 15% of single people with an income of $108,001 or above don’t insure despite it being cheaper than paying the Medicare Levy Surcharge. We don’t know precisely why. Maybe people are not sure of the financial benefit due to changes in their income, or if they are, cannot be bothered, or do not have time, to explore their options. Maybe, as <a href="https://www.reddit.com/r/AusFinance/comments/x2909w/does_anyone_else_willingly_pay_the_medicare/">anecdotal reports suggest</a>, rather than buying private health insurance, some people would rather support the public system by paying the Medicare Levy Surcharge. The point is, people who are not buying private health insurance appear to be highly resistant to financial incentives. So stronger penalties might have little effect. Instead, we propose the Medicare Levy Surcharge be better targeted to true high-income earners. We can do that by increasing income thresholds for the surcharge to kick in, which are then indexed annually to reflect changes in earnings. <h2>How about needing more expensive cover?</h2> Requiring people to choose silver level cover or above would address criticisms about people buying “<a href="https://theconversation.com/getting-rid-of-junk-health-insurance-policies-is-just-tinkering-at-the-margins-of-a-much-bigger-issue-82749">junk</a>” private health insurance they never intend to use. However, people may be buying this type of product because private health insurance has little value to them. Requiring them to spend even more on a product they don’t want is a roundabout way of taking pressure off the public system. So we propose keeping the current level of hospital cover required to avoid the surcharge, rather than increasing it. <h2>Who loses?</h2> Taken together, the cost of these proposed changes would disproportionately fall on people with little to gain from private health insurance. These include younger people, those living in regional areas who do not have access to private hospitals, or those who prefer to support the public system directly. These groups are the least likely to use private insurance so have the least to gain from upgrading their cover. <h2>Where to next?</h2> The report also recommends keeping <a href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Private-health-insurance-rebate/">health insurance rebates</a> (a government contribution to your premiums), the <a href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Private-health-insurance-rebate/Lifetime-health-cover/">Lifetime Health Cover</a> loading (to encourage people to take out hospital cover while younger), as well as the Medicare Levy Surcharge. We also support keeping these three in the short to medium term. But we recommend gradually reducing public support for private health insurance. We believe the ultimate goal of reforming private health insurance is to optimise the overall efficiency of the health-care system (both public and private systems) and improve population health while saving taxpayers’ money. The goal should not be merely increasing the take-up of private health insurance, which is the focus of the current report. So, as well as our recommendation to better target the Medicare Levy Surcharge, we need to: <ul> <li> lower income thresholds for <a href="https://theconversation.com/the-private-health-insurance-rebate-has-cost-taxpayers-100-billion-and-only-benefits-some-should-we-scrap-it-181264">insurance rebates</a>, especially targeting those on genuinely low incomes. This means lower premiums only for the people who can least afford private health care </li> <li> remove rebates <a href="https://theconversation.com/private-health-insurance-premiums-should-be-based-on-age-and-health-status-122545">based on age</a> as higher rebates for older people <a href="https://www.tandfonline.com/doi/abs/10.1080/13504851.2017.1299094?journalCode=rael20">do not</a> encourage more to insure. Rebates should be tied to just income, which is a better indicator of financial means.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/210981/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> </li> </ul> <a href="https://theconversation.com/profiles/yuting-zhang-1144393">Yuting Zhang</a>, Professor of Health Economics, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> and <a href="https://theconversation.com/profiles/nathan-kettlewell-903866">Nathan Kettlewell</a>, Chancellor's Postdoctoral Research Fellow, Economics Discipline Group, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/private-health-insurance-is-set-for-a-shake-up-but-asking-people-to-pay-more-for-policies-they-dont-want-isnt-the-answer-210981">original article</a>.

Money & Banking

"My unexpected $223,000 overseas bill"

Jeffrey Yates had just embarked on a once-in-a-lifetime holiday with his wife to celebrate their wedding anniversary. Instead, he ended up racking up a whopping $223,255 bill, the biggest claim his insurance company had seen during 2017. The 71-year-old from Western Australia said the pair’s much-anticipated trip had started off well. “The trip was a particularly special one as it was our 50th wedding anniversary, so it was something we’d been looking forward to for quite some time,” Mr Yates told <a href="http://www.news.com.au/travel/travel-advice/health-safety/my-unexpected-223000-overseas-bill/news-story/94cd850899f9e1367bf6f3fb49621307">news.com.au.</a> “We started in Dubai, and then went over to Athens. From there, we jumped on a cruise from Athens to Barcelona.” But things soon took a turn when Jeffrey was struck with a series of illnesses while in Italy. “We were only a week in when my health started to deteriorate,” he said. “I contracted legionnaires’ disease and pneumonia which led to me discovering that I had emphysema on the trip. “The experience was quite scary and my wife and our two friends had to leave the cruise early to assist during my recovery.” He ended up in hospital for more than a month. “Within three days they’d dropped us off in Naples to see a specialist hospital, which led to 16 days in intensive care. This was followed by an extended stay in hospital. “All up, I was out of action for 47 days. After all was said and done, the total came to well over $220,000 … It was an extremely difficult situation.” Jeff says that while the couple always take out travel insurance, it was more for his wife who has ongoing health issues. He hadn’t anticipated he would need it. “It’s not something you think about, especially given how quickly those transportation and hospital bills can add up,” he said. “Of course, we were disappointed that such a long-awaited trip had been cut short, but we are grateful that it wasn’t worse and that we weren’t left out of pocket.” He says his experience show that all travellers need to protect themselves when travelling – as you really never know what could happen. Jeff still has ongoing health issues that he is being monitored for, including breathing issues for which he still requires oxygen. Images: Getty

Travel Trouble

5 ways to get through the airport faster

There’s a reason they say get to the airport at least two hours early. From checking your luggage to getting processed by customs, catching an international flight can be a tedious, at times frustrating task, particularly when pressed for time in a crowded airport. It doesn’t have to be this way, though. We’ve put together a useful list containing five handy airport tips to help you get to your gate faster. 1. Check in online This can be a major time-saver, particularly if you’re not checking bags. Most airlines have now made checking in online a relatively simple, fool-proof process and even offer automated check in services when you arrive if you can’t get to a computer. Airlines these days also generally have an easy to use flight status feature, so you can be aware of any unexpected delays before you actually rock up. 2. Weigh your bags The person who’s been standing in line for 20 minutes only to suddenly realise when they’ve reached the counter that they need to frantically move clothes from one bag to another to make the weight limit isn’t the most popular person at the airport. Make sure you know the weight of your bags before you arrive. Many airports have scales installed near the entrance for a last minute check. 3. Have your important documents ready Make sure you’re ready to go when you hit the front of the line by having your boarding pass, ID/passport and credit card stored in an easily accessible part of your wallet or bag. This may seem like a small detail, but it means you won’t waste time rifling through your possessions when you get to the front of the line and decreases the chance of leaving something important at home. 4. Passing through customs and immigration These processes can be streamlined by just being a little bit cooperative. Have your documentation ready, fill out any paperwork and answer any questions the officials may have in an honest, clear manner. Making sure you pay attention to little details like this also decreases your chances of having to face a grilling from a surly customs official, which is just as fun as it sounds. 5. Figure out the gate your flight is departing from While you generally have plenty of time to pick up a nice duty-free bargain after customs, don’t be complacent. Even if it’s just a quick glance at the departure times, make sure you know the actual gate your flight is departing from. Nobody likes to hear their name over the airport loudspeaker, particularly if the voice is directing you to a gate that’s on the other side of the terminal. Don’t let long, potentially mood-killing lines at the airport derail the start of your trip. With a little bit of advance planning you can get through the airport quickly and avoid the unnecessary stress. Image credits: Getty Images

Travel Tips

Are you sure your life cover's the best?

Life insurance protects your loved ones and your way of life - but it’s not supposed to be a ‘set and forget’ exercise. If it’s been more than five years since you’ve reviewed your life cover, there’s a good chance you’re likely paying too much in premiums, especially if: <ul> <li>You’ve paid off your home loan, or your repayments are substantially lower than they once were.</li> <li>Your children have moved out of your family home.</li> <li>You’ve stopped smoking</li> <li>You’ve downsized your home.</li> <li>You’ve retired, or plan to do so in the near future.</li> </ul> All of the above scenarios can make a difference to the level of life cover you need - and the premium you’re currently paying. It’s worth a phone call to find out where you might find some savings. Income protection cover, for example, isn’t applicable once you’ve retired - so make sure you’re not paying for it. Going over the required paperwork can seem daunting, and life insurance policies can be confusing - that’s why <a href="https://lp.compareclub.com.au/life-oversixty/?utm_medium=partner&utm_source=over60&utm_campaign=life&utm_content=nativearticle&category=life" target="_blank" rel="noopener">OverSixty works with Compare Club</a> to make this process as easy as possible. Compare Club have been helping Aussies save money - and make sense of - insurance policies since 2010. They look at policies from Australia's leading life insurers#. Their expert life cover brokers don’t leave you to work it all out on your own. They ask questions, listen, and help complete your paperwork. Talk to one of our experts about your life cover today. <h4 style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; line-height: 1.2; color: #212529; font-size: 1.5rem; background-color: #ffffff;">Call 1300 863 204 now, or <a style="box-sizing: border-box; color: #258440; text-decoration-line: none; background-color: transparent; transition: all 0.2s ease-in-out 0s;" href="https://lp.compareclub.com.au/life-oversixty/?utm_medium=partner&utm_source=over60&utm_campaign=life&utm_content=nativearticle&category=life" target="_blank" rel="noopener">click here</a> to save today!</h4> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; background-color: #ffffff;"> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; background-color: #ffffff;"> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; background-color: #ffffff;"><span style="box-sizing: border-box; font-family: -apple-system, system-ui, 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji';">The information contained in this guide is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. As such, it is important that you consider the appropriateness of any advice and the relevant product disclosure statement (PDS) before proceeding. Check with a financial professional before making any decisions. <span style="box-sizing: border-box; font-family: -apple-system, system-ui, 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji';">#Compare Club compares selected products from a panel of trusted insurers. We do not compare all products in the market.

Caring

10 shocking examples of bad hotel etiquette

Travel website Expedia has released an exhaustive study on hotel etiquette, asking thousands of travellers around the world to rank the 10 types of hotel behaviour that aggravate them the most. Some of these examples left us scratching our heads! 10. The elevator chatterbox The 10th most annoying hotel-etiquette-gripe for travellers cited by Expedia is hotel guests with a tendency to be a little too chatting on elevators. While you can’t fault anyone for wanting to have a chat, the confined nature of an elevator can make the conversation a little bit awkward. 9. The boozer at the hotel bar Watching this guy drink his way through his per diem is a sight to behold, and not in a good way. You might just want to have a quiet drink at the hotel bar in peace, but because this guy is hell-bent on turning his business trip into the last days of Rome odds are you’re going to be rudely interrupted. 8. The couple canoodling in the hot tub The one thing we can take solace in here is the fact that a lot of the germs won’t be able to withstand the hot tub temperatures. But the thought of jumping into the biological soup formed by a couple canoodling in the hot tub is one that definitely makes our stomachs turn! 7. The loudly amorous couple Coming in at number seven on the list is the couple that are having the romantic escape of a lifetime, which you have unfortunately had to listen to every minute of. It’s in moments like this many travellers have whispered a silent prayer of thanks that earplugs exist. 6. The group partying by the pool There’s nothing like a relaxing dip in the hotel pool, but when this group is hanging out it’s hard to get a foot in the water! The only thing that seems to be greater than their obnoxious behaviour is their omnipresence outside of the pool everywhere – don’t they have rooms to stay in? 5. The bickering couple Hey, will someone let these two know that they’re on holidays? Whether it’s a very uncivil discussion as to whether they should have a spa or massage tomorrow, or a fire-breathing fight concerning whether they should go to a café or have the breakfast buffet, these two need to calm down a bit. 4. The in-room revellers These people seem to be intent on achieving two things in life – partying all night and inhibiting your ability to get some much needed shut eye as they do so. No amount of pleading (or banging on the hotel walls) will seem to get these people to quieten down and show some respect. 3. The excessive complainers Some people are so intent on complaining you’d think that’s half the reason they went away at the first place. When these people aren’t at the hotel bar questioning the amount of bitters in their lemon lime and bitters at, they’re at the concierge desk making all sorts of ridiculous requests. 2. The hallway hellraisers Often mistaken for a stampede of wild horses (at least by the amount of sound they’re making as they move through the hotel, hallway hellraisers get from the lobby to their hotel room with the grace and finesses of an elephant walking around in platform heels two sizes too small. 1. Inattentive parents Children bring joy into this world, but not when they’re wreaking havoc in hotel lobbies. The only thing worse is the inattentive parents who are too engrossed in their own world’s to control their kids, which is why travellers ranked this as the most aggravating example of poor hotel etiquette. The study also revealed some hidden habits of people staying at hotels, mainly: <ul> <li>26 per cent have hoarded toiletries to take home with them;</li> <li>9 per cent have invited multiple people into their room overnight without telling the hotel;</li> <li>8 per cent have secretly taken items from their hotel room;</li> <li>6 per cent sneak down to the pool first thing in the morning to “reserve” a spot by placing towels on chairs;</li> <li>5 per cent have smoked in a non-smoking room;</li> <li>2 per cent have deliberately eavesdropped on guests in a neighbouring room.</li> </ul> Image credits: Getty Images

Travel Tips

Travel tips everyone will want to know

Making sure you’ve crossed everything off your to-do list in preparation for travelling takes military-like precision. From arranging travel insurance to ensuring your hotel is locked in – and even making sure you’ve packed all of the right documents in your bag – there’s a lot to consider and arrange. To ensure you have a smooth holiday – and to give you some ideas on how to handle things should you encounter any hiccups – we have rounded up the Over60 community’s top travel tips – and there are some real gems in here! ‪Sandy Dalzell says… “1. I typed up a travel/packing list several years ago when we started to travel overseas and I have saved it on my computer, so that when it is time to start getting organised and pack, I simply print off my list. I have all weather contingencies covered so obviously if we are going somewhere in summer, I simply cross off the thermals, gloves, scarf etc. It also has listed on it jobs to be done like turn off the water to the dishwasher and the washing machine etc. 2. We also put all of our house and car keys in an envelope and give them to one of our daughters for safekeeping – if we get broken into, they won't be able to unlock doors to steal stuff easily nor will they be able to drive off in our car. 3. My husband and I always get our travel insurance organised at least a month before we have to pay our final payment for our tour.” ‪Debra Hall‪ says… “1. Coordinate your clothes around one or two basic colours. Black evening pants/skirt is all you need for dressy occasions. Scarves/shawls/sarongs also make great accessories. ‪2. Know the local laws/customs and abide by them. ‪3. Carry baby wipes/facewipes. ‪4. Carry tissues that can double up as toilet paper. Plus carry a hand sanitiser. ‪5. Pack thongs for use in beach/pool/showers. Showers can be gross. ‪6. Buy and wear good walking shoes. Blisters are not fun and high heels don’t work on Europe’s cobblestone. ‪7. Take Imodium, bandaids, antiseptic cream and Panadol. ‪8. Don’t have a strict fixed itinerary... be flexible enough to enjoy and spend extra time at special discoveries. ‪9. Sit and people watch. Absorb the wonderful surrounds. ‪10. Talk and eat with the locals.” <a href="../travel/travel-insurance/2014/12/travel-insurance-facts/" target="_blank" rel="noopener">Related link: Surprising facts about travel insurance</a> ‪Judy Ward‪ says… “If travelling with a companion, put half of your clothes in their bag and vice versa. That way, if one bag gets lost you will still have some clothes until you can buy more.” ‪Ally Macklinsays… “I always get my doctor to give me a script for a general antibiotic – two doses. Get the script filled before you go. It has come in handy on two occasions. Better to have it on you than trying to find a doctor in a strange place. Also take a small first aid kit.” ‪Gai Brown says…‪ “Take one adaptor (or universal if you’re visiting different zones) and an Aussie power board with four to six outlets. Then you can charge all of your devices and use hair dryer/straightener at the same time – easy!” ‪Lesley Bradford‪ says… “ALWAYS photocopy every document – both sides. Leave one lot at home with a family member or trusted friend. And take a copy with you, in a separate area of your luggage. It is amazing the people who need the information when they lose passports, purses etc. And take out travel insurance – it is amazing the number of people who go overseas and spend thousands and complain about another few hundred dollars.” ‪Denise Trainor‪ says… “Be methodical and develop routines. Lists are invaluable, start about three before the trip. Don't forget to cancel the paper, gym membership and set up all household bills on direct debit. Organise someone to keep an eye on your house and collect your mail etc. Organise your SIM card for your overseas travel. Pack your suitcase and then take half out. Plan to take only comfortable clothes and shoes. Take old underwear and throw it out before you arrive home.” ‪Rosemary Thomas says..‪. “I pack an old towel in the bottom of my case. When I handwash clothing while away, I wring out as much as I can then put my clothes inside the towel then stomp on it – to remove most of the moisture. Clothes are usually dry by next day.” ‪Amanda Candy says…‪ “Less is more. I like to travel light. Leave room for serendipity if your entire trip is planned to the last second it doesn't leave room for those spontaneous opportunities that always happen when you are travelling. Don't be afraid to talk to people when you’re in new places – if you only spend time with your travel companion you miss out so many magical moments. Talk to the locals.” ‪Helen Newton‪ says… “Having just recently returned from overseas, in future I would have the following ready and accessible: travel insurance policy number, passport, and credit card. I had to call a doctor in the middle of the night for a medical emergency and it is very difficult to think of where each of these documents/cards are stored in your hotel room. If you have a copy of each of these things in a folder or envelope, it would make things less stressful.” ‪Kathie Wright says…‪ “I always take a photo on my iPhone of all the printed documents including passports and save to iPhone.” ‪Christine Maree Cieplucha says…‪ “I roll all of my clothes and put them in zipped bags that have names on them – for example, dresses, trousers, blouses, underwear. Plus, I have shoe bags and if possible I put the shoe colour in the same colour bag (yes a bit OCD) but it does help. I find I don’t have to reef through things to find a top or dress – instead, I know exactly where to look.” <a href="https://elevate.agatravelinsurance.com.au/oversixty?utm_source=over60&utm_medium=content&utm_content=link1&utm_campaign=travel-insurance">Tailor your travel insurance to your needs and save money by not paying for things you don’t need. Click here to read more about Over60 Travel Insurance.</a> Related links: <a href="../travel/travel-insurance/2014/12/travel-checklist/" target="_blank" rel="noopener">The must-do before-you-take-off checklist</a> <a href="../travel/travel-insurance/2014/12/travel-emergencies/" target="_blank" rel="noopener">What to do in an emergency while travelling</a> <a href="../travel/travel-insurance/2014/12/why-you-need-travel-insurance/" target="_blank" rel="noopener">Travel insurance: why you should never leave home without it</a> Image credit: Shutterstock

Travel Tips

Why you need domestic travel insurance

If you’re travelling domestically then you’ve already eliminated the stress of long flights and airport hold-ups. But just like travelling internationally, it’s important to be insured. Natural disaster cover Most insurers will cover cancellation and amendment claims caused by natural disasters for both international and domestic travel. Cover will vary significantly so check with your insurer to see if you’re eligible to claim. Flight cancellation cover While travel insurance doesn’t always cover cancellations and delays - if there is a natural disaster preventing the plane from taking off, then travel insurance will likely cover it. Rental car cover Domestic travel insurance policies usually cover hire-car excess. Insurance can be an affordable alternative that covers more than just the care hire. <ul> <li dir="ltr" aria-level="1"> If you’re involved in an accident in your rental car, you’ll likely have to pay the car-hire company for the damages upfront, and then claim them back from your insurer. </li> <li dir="ltr" aria-level="1"> Travel insurance is charged per person, so if there is more than one driver, you will need insurance for each person. </li> </ul> Baggage cover Domestic travel insurance will cover your baggage, with the exception of some ‘cancellation only’ policies. Make sure you don’t already have ‘portable contents’ cover for specified items under your home contents insurance. If you want to cover expensive items you regularly leave the house with, such as a phone or laptop, you should ensure you’re covered all the time. Credit card insurance Credit card insurance typically won’t apply to domestic travel, though some platinum cards can reimburse expenses as a result of flight delays and missed connections. Pro tip: Inform your bank that you will be travelling because they may detect fraudulent activity if you're making frequent purchases far away from home. Image credit: Shutterstock

Domestic Travel

Getting life cover can mean a 15% rebate for you

We all have loved ones who rely on us. Life insurance offers security, but so many of us are doing it tough at the moment that another outgoing seems scary. <a href="https://lp.compareclub.com.au/life-oversixty/?utm_medium=partner&utm_source=over60&utm_campaign=life&utm_content=nativearticle&category=life" target="_blank" rel="noopener">OverSixty is partnering with Compare Club</a> to find ways you can still protect your family, without breaking your retirement budget. For example: Did you know you’re able to split your life insurance so some of it’s paid in your super fund? It’s true! Accessing your life cover like this gives you a way to: <ul> <li>Keep your out-of-pocket expenses low.</li> <li>Access discounted premiums: your 15% rebate makes dollars and good sense.</li> <li>Afford better cover with more benefits for you - and your family.</li> </ul> <a href="https://lp.compareclub.com.au/life-oversixty/?utm_medium=partner&utm_source=over60&utm_campaign=life&utm_content=nativearticle&category=life" target="_blank" rel="noopener">Compare Club’s life cover experts</a> have this knowledge at their fingertips. They’re experts who have been helping Aussies save money on insurance policies since 2010. You don’t need to puzzle it all out on your own either. Compare Club’s brokers match policies to people’s real-life circumstances - and handle your paperwork. Compare Club looks at policies from Australia's leading life insurers#, so talk to an expert today about your future, and your family. <h4 style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; line-height: 1.2; color: #212529; font-size: 1.5rem; background-color: #ffffff;">Call 1300 863 204 now, or <a href="https://lp.compareclub.com.au/life-oversixty/?utm_medium=partner&utm_source=over60&utm_campaign=life&utm_content=nativearticle&category=life" target="_blank" rel="noopener">click here</a> to save today!</h4> The information contained in this guide is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. As such, it is important that you consider the appropriateness of any advice and the relevant product disclosure statement (PDS) before proceeding. Check with a financial professional before making any decisions. #Compare Club compares selected products from a panel of trusted insurers. We do not compare all products in the market.

Money & Banking

4 worst travel disasters and how to avoid them

After all the stress involved in preparing and booking an overseas trip, it can be quite disheartening for something to go wrong while you’re on holidays aboard. With a bit of planning however, you can be sure that even if you fall victim to one of these travel disasters you’ll be in a good position to continue your trip. Here are four of the worst travel disasters, and how to avoid them. These travel disasters can easily turn the trip of a lifetime into one that you’d rather forget. 1. Missed flight The prospect of running through a crowded terminal only to be greeted by a closed door at the gate is one that sinks the heart of even the most nonchalant traveller. And missing a flight can really throw a spanner in the works for your travel plans. If your plane has taken off without you, it’s recommended that you immediately go to your airline’s desk who can get you on the next flight. Whether or not you will have to pay for this is another matter entirely, and depends on who’s at fault for the missed flight. The best safeguard in this case, is having travel insurance that covers you for missed connections. 2. Lost luggage There’s few feelings in the world of travel that are worse than the one you get hours after disembarking from your flight, standing at a now-empty baggage carousel, and knowing that two weeks of holiday clothing is anywhere in the world but here. Make sure you hang onto your baggage ticket and if this ever happens head to counter or office at your airport and fill out a missing baggage form. If your bag has indeed been lost or damaged and the airline is at fault you may be compensated, but it’s another one of those circumstances where it is just best to have travel insurance to make sure you’re prepared. 3. Becoming sick From cold to migraines to something more serious, there is nothing in the world that ruins your dream trip like becoming sick. If you have fallen ill overseas it’s recommended you seek medical assistance as soon as possible. In some countries you may have to pay for your treatment upfront, and if this is the case then you may have to contact your travel insurance provider (they generally have 24 hour contact centres) to arrange payments. If you don’t have insurance and are in a situation where you have to pay for treatment upfront you must contact your financial institution or a family member. 4. Lost passport Opening your daypack only to find your passport missing is every traveller’s worst nightmare. If this has happened to you, it’s important to contact the local police and then the New Zealand embassy, who will be able to provide you with an emergency passport so you can return home. Carry an extra copy of your passport in a separate part of your luggage. Images: Getty

Travel Trouble

What does your health fund know about living costs? Because health cover premiums are on the rise this year too!

Have you noticed more scary headlines about ballooning inflation and climbing interest rates out there lately? While the media love their dramatic headlines, there’s more truth than usual in their scary stats. It’s no secret that a lot of us are feeling squeezed financially at the moment. The cost of living has shot up in recent months - from interest rates, to groceries, and new energy and fuel price hikes, it’s getting harder to make ends meet. Health cover is no exception. In fact, in 2023, health insurance premiums are set to rise by an average of 2.9%... …but did you know that your fund can put your premium up by a lot more than that? It’s true. Don't be fooled by any ‘average’ messaging. An ‘average increase’ is just that - an average. Your premium may be going up by a lot more. OverSixty has partnered with Compare Club, Australia’s most trusted team of health insurance experts,* who spend every day talking to Aussie families – and they’ve recently shared with us two examples: 1. Kevin's policy has gone up by 20% in 2 years - that’s a LOT more than the current rate of inflation it’s being blamed on. 2. Cassie's family combined cover policy is going up by 13.67% or $33.60 a month - that’s over $400 a year on top of her current premium. We know how much households are hurting right now, so Compare Club talked to us about three smart ways to keep your health insurance premiums in check - without compromising your cover: 1. Downsize your policy - only pay for what you need: Are you on a top tier policy you’re not fully using? You might find you can get a Silver Plus or Bronze Plus tier policy with a lower premium, and stay covered for what you need. 2. Split policies - health funds’ best kept secret: If you and your partner have different health needs, splitting your cover across two different policies - or even two different funds - could save your family several hundred dollars in annual premiums. 3. Pay in advance - before your premium rises: You may have noticed that a lot of health funds have delayed their premium increase this year. If yours is one of these, and you can afford to pay your full annual premium before the date of increase, you’ll lock in a full year’s worth of savings for yourself. Know your options: “Health funds are a competitive bunch, so you don’t have to take what your fund dishes out. If you've not reviewed your health cover recently, you could be paying an average of $785^ more than you need.” – Compare Club CEO, Andrew Davis. OverSixty has partnered with Compare Club’s experts who have saved over 136,500 customers an average of $300 on health cover premiums over the last five years^. We’re quite sure you have better things to do with your money than overpaying for health cover. Compare Club have been helping Aussies switch and save on health cover since 2010#, so get in touch and see how much their experts could save you. <h4 style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; line-height: 1.2; color: #212529; font-size: 1.5rem; background-color: #ffffff;">Call 1300 863 204 now, or visit <a style="box-sizing: border-box; color: #258440; text-decoration-line: none; background-color: transparent; transition: all 0.2s ease-in-out 0s;" href="https://lp.compareclub.com.au/over60/?utm_medium=partner&utm_source=over60&utm_campaign=raterise&utm_content=nativearticle&category=health" target="_blank" rel="noopener">compare.oversixty.com.au</a> to save today!</h4> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; background-color: #ffffff;"> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; background-color: #ffffff;"> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; background-color: #ffffff;"> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; background-color: #ffffff;">*Based on Trustpilot reviews, correct as of 04/01/23 ^Savings based on 136,746 customers between 1 Jan 2018 - 23 December 2022. #Compare Club compares selected products from a panel of trusted insurers. We do not compare all products in the market.

Caring

Would you be happy to lose over $1,300 a year?

OverSixty has partnered with Compare Club to stop this happening! There’s nothing worse than paying for something that you aren’t using! It means you’re missing out on good value - and cost savings! This is exactly what happens to a lot of us with our health insurance extras though! According to Senior Health Insurance Adviser at Compare Club Eli Boroda: “Australians leave $1,300 of their extras to go to waste each year^. Every day I have the same conversation with people who suddenly realise they’re paying top dollar for a policy with generous annual limits on dental, physio, chiro, and more, that they’ll never come close to using. The health funds love these guys - they’re like gym members who join but stop going after a month.” In order to help you save, <a href="https://lp.compareclub.com.au/over60/?utm_medium=partner&utm_source=over60&utm_campaign=raterise&utm_content=nativearticle&category=health" target="_blank" rel="noopener">OverSixty has partnered with Compare Club</a>, one of Australia’s most trusted teams of health insurance experts*. They review health funds and their policies every year - and their data shows that a lot of Aussies leave around $1,300 of health fund extras going to waste each year. That's a lot of money to leave unspent - especially with your health insurance premiums on the rise! Use them, or lose them… Did you know that extras for health fund benefits don’t roll over? That’s right - if you don’t use them across your calendar year, you’re just giving your health fund your money for free. For example: Most Aussies can access up to $1,050 of dental rebates, but only claim around $238, meaning they’ve missed out on $812 worth of treatments or check-ups**. In 2023, that’s way too much money to leave behind, so here are our top 5 expert tips to maximising your extras: <ol> <li>Keep your receipts: most health insurers let you claim in the following year for treatments that you paid for in this year, so you can still claim those rebates.</li> <li>Many health funds make it easy to check what benefits you’ve got remaining either online or via an app. Get in the habit of checking your benefits on the first or last day each month. Book in those appointments you need. </li> <li>Are there a range of extras on your policy you just can’t seem to use up? This is the BIGGEST sign your policy isn’t a great fit for you. Consider switching to cover that delivers benefits you’ll actually use.</li> <li>Check what percent benefit your fund gives you for the extras you use regularly - like dental, optical, and physio. Policies that offer 100% cover for services you use most are where you’ll make the most savings - and don’t forget to claim!</li> <li>Last but not least, <a href="https://lp.compareclub.com.au/over60/?utm_medium=partner&utm_source=over60&utm_campaign=raterise&utm_content=nativearticle&category=health" target="_blank" rel="noopener">talk to one of our expert brokers</a> – they’ll help you audit your cover so it actually meets your needs, without costing the earth.</li> </ol> There’s no point paying hundreds of dollars for big annual extras limits if you never use them up. In fact, it means you’re losing money! If you’re wondering about better value cover for yourself or your family, talk to an expert broker about what's on offer right now. <h4>Call 1300 863 204 now, or visit <a href="https://lp.compareclub.com.au/over60/?utm_medium=partner&utm_source=over60&utm_campaign=raterise&utm_content=nativearticle&category=health" target="_blank" rel="noopener">compare.oversixty.com.au</a> to save today!</h4> ^<a href="https://7news.com.au/lifestyle/personal-finance/millions-of-australians-have-just-12-days-left-to-claim-1300-c-9209596" target="_blank" rel="noopener">Australians missing out on $1,300</a> *Based on Trustpilot reviews, correct as of 04/01/23 **<a href="https://7news.com.au/lifestyle/personal-finance/millions-of-australians-have-just-12-days-left-to-claim-1300-c-9209596" target="_blank" rel="noopener">Australians not claiming full dental rebates.</a>

Money & Banking

Just 25% of businesses are insured against cyber attacks. Here’s why

In the past financial year, the Australian Cyber Security Centre received <a href="https://www.cyber.gov.au/acsc/view-all-content/reports-and-statistics/acsc-annual-cyber-threat-report-july-2021-june-2022" target="_blank" rel="noopener">76,000 cyber-crime reports</a> – on average, one every seven minutes. The year before, it was a report every eight minutes. The year before that, every ten minutes. The growth of cyber crime means it is now arguably the <a href="https://www.aon.com/2021-global-risk-management-survey/index.html" target="_blank" rel="noopener">top risk facing any business</a> with an online presence. One successful cyber attack is all it takes to ruin an organisation’s reputation and bottom line. The estimated cost to the Australian economy in <a href="https://www.unsw.adfa.edu.au/newsroom/news/cybercrime-estimated-42-billion-cost-australian-economy" target="_blank" rel="noopener">2021 was $42 billion</a>. To protect itself (and its customers), a business has three main options. It can limit the amount of sensitive data it stores. It can take greater care to protect the data it does store. And it can insure itself against the consequences of a cyber attack. Cyber-insurance is a broad term for insurance policies that address losses as a result of a computer-based attack or malfunction of a firm’s information technology systems. This can include costs associated with business interruptions, responding to the incident and paying relevant fines and penalties. The global cyber-insurance market is now worth an estimated US$9 billion (A$13.9 billion). It is tipped to grow to <a href="https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/MunichRe-Topics-Cyber-Whitepaper-2022.pdf/_jcr_content/renditions/original./MunichRe-Topics-Cyber-Whitepaper-2022.pdf" target="_blank" rel="noopener">US$22 billion by 2025</a>. But a big part of this growth reflects escalating premium costs – in Australia they increased more <a href="https://www.insurancebusinessmag.com/au/news/cyber/whats-driving-up-cyber-insurance-premiums-in-australia-417542.aspx" target="_blank" rel="noopener">than 80% in 2021</a> – rather than more business taking up insurance. So coverage rates are growing slowly, with about 75% of all businesses in Australia having no cyber-insurance, according to 2021 figures from the <a href="https://insurancecouncil.com.au/wp-content/uploads/2022/03/Cyber-Insurance_March2022-final.pdf" target="_blank" rel="noopener">Insurance Council of Australia</a>. Challenges in pricing cyber-insurance With cyber-insurance still in its infancy, insurers face significant complexities in quantifying cyber risk pricing premiums accordingly – high enough for the insurers not to lose money, but as competitive as possible to encourage greater uptake. A 2018 assessment of the cyber-insurance market by the <a href="https://www.cisa.gov/sites/default/files/publications/20_0210_cisa_oce_cyber_insurance_market_assessment.pdf" target="_blank" rel="noopener">US Cybersecurity and Infrastructure Security Agency</a> identified three major challenges: lack of data, methodological limitations, and lack of information sharing. Lack of historical loss data means insurers are hampered in accurately predicting risks and costs. Because of the relative newness of cyber crime, many insurers use risk-assessment methodologies derived from more established insurance markets <a href="https://www.rand.org/pubs/external_publications/EP67850.html" target="_blank" rel="noopener">such as for car, house and contents</a>. These markets, however, are not analogous to cyber crime. Companies may be hesitant to disclose information about cyber incidents, unless required to do so. Insurance carriers are reluctant to share data pertaining to damage and claims. This makes it hard to create effective risk models that can calculate and predict the likelihood and cost of future incidents. So what needs to be done? Deakin University’s <a href="https://cybercentre.org.au/" target="_blank" rel="noopener">Centre for Cyber Security Research and Innovation</a> has been working with insurance companies to understand what must be done to improve premium and risks models pertaining to cyber insurance. Here is what we have found so far. First, greater transparency is needed around cyber-related incidents and insurance to help remedy the lack of data and information sharing. The federal government has taken two steps in the right direction on this. One is the <a href="https://www.accc.gov.au/focus-areas/consumer-data-right-cdr-0" target="_blank" rel="noopener">Consumer Data Right</a>, which provides guidelines on how service providers must share data about customers. This came into effect in mid-2021. The other is the government’s proposal to amend <a href="https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6940" target="_blank" rel="noopener">privacy legislation</a> to increase penalties for breaches and give the Privacy Commissioner new powers. Second, insurers must find better ways to measure the financial value and worth of the data that organisations hold. The primary asset covered by cyber insurance is the data itself. But there is no concrete measure of how that data is worth. The recent Optus and Medibank Private data breaches provide clear examples. The Optus event affected millions more people than the Medibank Private hack, but the Medibank Private data includes <a href="https://www.afr.com/technology/privacy-fallout-from-medibank-hack-will-be-widespread-20221023-p5bs75" target="_blank" rel="noopener">sensitive medical data</a> that, in principle, is worth far more than data regarding just your personal identity. Without an accurate way to measure the financial value of data, it is difficult to determine the appropriate premium costs and coverage. Cyber insurance is a new, specialised market with significant uncertainty. Given the ever-increasing risks to individuals, organisations and society, it is imperative that insurers develop robust and reliable risk-based models as soon as possible. This will require a consolidated effort between cyber-security experts, accountants and actuaries, insurance professionals and policymakers.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/193533/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> Writen by Jongkil Jay Jeong and Robin Doss. Republished with permission from <a href="https://theconversation.com/just-25-of-businesses-are-insured-against-cyber-attacks-heres-why-193533" target="_blank" rel="noopener">The Conversation</a>. Image: Getty Images

Money & Banking

Tips for buying a second hand car

If you’re not a car expert, buying a used car can be tricky. Here’s a few simple tips to make the process easier. Second hand or used cars are an affordable option when you’re looking to purchase a vehicle that will get you from A to B. However, if you’re not a car expert, it can be difficult to determine if the pre-loved vehicle you’re buying is reliable and trusty, or will need extensive repair work to make it roadworthy. Having said that, you can buy a used car without having studied exactly what makes a car run. Your insurance company won’t cover the costs of damage that was already on the vehicle when you purchased it. These costs will need to be covered by you. It’s for this reason that it’s important to do a thorough check of the vehicle, both internally and externally, before buying it. Follow these basic guidelines to help ensure you buy a gem and not a lemon. Take a sniff “The first thing to do is check the interior of the car really closely,” says David Skapinker from over 50s insurer, Apia. “If there has ever been water damage to a car it might only show under the carpeting, but ultimately it could lead to rust issues. What we suggest is to take a bit of a sniff around the car. It sounds funny but the water damage may actually show itself as a musty smell. “We would also suggest people check for things like scuffing, loose trimming and upholstery tears. Basically, anything that is considered pre-existing damage to when you take out an insurance policy won’t be covered by that policy, so the costs to repair that really will be up to you.” Don’t forget the boot Another key area to check is the car’s boot. Take a look inside the boot to check if the vehicle has any internal damage, which could be the result of a previous incident. “If the car you’re buying has had a rear-end accident the external damage may have been fixed, but it’s very hard to fix the internal damage easily,” Mr Skapinker explains. “Take a good look at the exterior very closely too. If panels are slightly different colours, this might mean that damage from an accident has been repaired. There may be nothing wrong with that, but it’s worth getting an independent check of the quality of past repairs before you commit to buying the vehicle.” Check for rusting, small scratches and dents, and if you’re happy to live with these, then go ahead with your purchase. However, if you’re hoping to get these fixed, keep in mind a new insurance policy wouldn’t cover it as pre-existing damage is not included. . Getting mechanical From the boot to the bonnet, it’s important to check the mechanics of the car as well. “If you are someone who is comfortable taking a look under the bonnet, common things to look out for are blocks or wear and tear around the carburettor, fuel injector, timing belts and spark plugs,” Mr Skapinker says. “For those who wouldn’t know where the carburettor is located, there are companies you can get in touch with who send out independent inspectors to thoroughly check the vehicle for you.” After giving your potential purchase an inspection, take it for a test drive as this is one of the most important steps in purchasing a second hand car. When you’re taking the car for a spin around the block, check the wheel alignment is not pulling the vehicle to the left or right, ensure the tyres and brakes work properly and that there are no odd sounds coming from under the bonnet. “Listen out for sounds like knocks and rattles,” Mr Skapinker says.“This can be a good indicator that something may be wrong.” Remember, this is a large purchase so take your time before making a decision. Be prepared in knowing what you want, what to look out for and what your limits are.

Money & Banking

Be prepared: There’s a premium increase coming

Health insurance premiums are going up every year and in 2022, are rising at an average of 2.70%*. Although 2.70%* might not seem a lot, <a href="https://compareclub.com.au/health-insurance/quote/cover-type-location/?utm_source=over60&utm_medium=affiliate&utm_campaign=raterise&utm_content=article&utm_term=getaquote&utm_category=health" target="_blank" rel="noopener">Compare Club</a>'s data suggests that Australian couples aged 65 could see an average increase in premiums ranging from at least $155^, depending on your policy. So how do you keep your health insurance affordable while still making sure you’re covered for everything you need? It’s simple: compare with <a href="https://compareclub.com.au/health-insurance/quote/cover-type-location/?utm_source=over60&utm_medium=affiliate&utm_campaign=raterise&utm_content=article&utm_term=getaquote&utm_category=health" target="_blank" rel="noopener">Compare Club</a> today and if you get a better deal, switch to a better value policy in minutes. How much does loyalty to your health insurer cost you? Staying loyal to the same health fund could really cost you, especially if you’ve put switching policies at the bottom of your to-do list. Compare Club's experts have crunched the numbers for you, and if you haven’t changed your cover in the last five years, premiums on average have gone up by 15.56%^. If that number isn’t shocking enough, Compare Club's internal data shows that if you’ve got a couples policy, you’ve paid, on average, around $794^^^ more for the same cover. It’s easy to get a better deal with the help of Compare Club's experts It’s easier than you think to miss the letter from your health insurer and end up paying hundreds of dollars more. Compare Club’s CEO Andrew Davis says that there’s some demographics who are sometimes hit harder than others: “We’ve found that older Australians are especially vulnerable to falling victim to the common health insurance traps like staying on an outdated policy, being talked into a higher level of cover, and fund loyalty incentives.” Fortunately, thousands of Australians have seen significant savings in their pocket once they’ve spoken to Compare Club's experts#. Over the last 5 years, Compare Club has saved their customers an average of $320** on their annual health insurance cost when they switched policies through them. So what are you waiting for? Make sure you’re saving on your health cover today and speak to <a href="https://compareclub.com.au/health-insurance/quote/cover-type-location/?utm_source=over60&utm_medium=affiliate&utm_campaign=raterise&utm_content=article&utm_term=getaquote&utm_category=health" target="_blank" rel="noopener">Compare Club</a>'s experts now. This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions. *<a href="https://www.health.gov.au/" target="_blank" rel="noopener">Health.gov.au</a>, <a href="https://www.health.gov.au/sites/default/files/documents/2021/12/average-annual-price-changes-in-private-health-insurance-premiums-list-of-historical-premium-price-changes-by-insurer-for-2022_0.pdf" target="_blank" rel="noopener">List of historical premium price changes by insurer - 1997 to 2022</a>, accessed 30th August, 2021. **Based on 111,658 policies sold Jan 2017 - Nov 2021 ^2.70% premium increase applied to the average premium of policies purchased through Health Insurance Comparison by singles and couples aged 65+ years in 2021 ^^^5 years of average premium increases applied to the average premium of policies purchased through Health Insurance Comparison by couples in 2018. #Compare Club compares selected products from a panel of trusted insurers. We do not compare all products in the market. This is a sponsored article produced in partnership with <a href="https://compareclub.com.au/health-insurance/quote/cover-type-location/?utm_source=over60&utm_medium=affiliate&utm_campaign=raterise&utm_content=article&utm_term=getaquote&utm_category=health" target="_blank" rel="noopener">Compare Club</a>.

Money & Banking

Do you need travel insurance for domestic trips?

When adding up your travel budget, insurance can seem like an unnecessary extra that you never really use – especially on a domestic trip. But before you dismiss the idea, here are a few reasons why you should insure every trip. 1. If you fall ill or injure yourself within Australia Medicare will cover your treatment, so you won’t need to call on your insurance. But a broken leg or stay in hospital most likely means you’ll need to change flights or cancel accommodation, and that won’t be covered by Medicare. Travel insurance will reimburse you for any changes you need to make. 2. You’ve booked your tickets, packed your bags and bought your sunscreen – then disaster strikes. There can be any number of reasons that you need to cancel a trip: a close family member gets sick, you have an accident, a cyclone hits the resort you’re staying at or your employer cancels your leave. Travel insurance will cover the out of pocket costs associated with cancelling flights, rental cars or accommodation. It can also cover any additional expenses that you incur if an airline cancels your flights. 3. Theft doesn’t just happen overseas and insurance will cover you for any of your property – and, sometimes, cash – stolen while you’re travelling. It can also cover items that are lost or accidentally damaged during your trip. 4. No one thinks they will injure another party or cause damage to property while they’re travelling, but it happens. If you’re at fault you could be sued and damages can run into the millions. Travel insurance generally includes coverage for personal liability, which covers you for legal expenses and compensation you may be required to pay to the other party. 5. If you travel a few times a year, purchasing an annual policy makes domestic insurance really cheap. Because you are covered by Medicare premiums are much lower than international policies. For only around $200 a year you can have full coverage around the country – and that’s less than the cost of one night in a hotel because of a delay.

Travel Trouble

With cost of living skyrocketing, is it time to find cheaper health cover?

When was the last time you checked your health cover? If it’s been a while since you last checked your policy, you could be paying more than you need to. Despite the rising cost of living, there are still big savings to be made if you know where to look. <a href="https://compareclub.com.au/health-insurance/quote/cover-type-location/?utm_source=impact&utm_medium=affiliate&tm_campaign=raterise&utm_content=article&utm_term=getaquote&category=health" target="_blank" rel="noopener">Compare Club</a>’s experts can help you compare health policies from a panel of leading insurers# and take care of the switching process – possibly saving you hundreds in just a few minutes. Over the last five years, Compare Club has saved customers an average of $320* on their annual health insurance costs when they switched policies through them. Their experts will help you squeeze out every last cent of savings and value from your policy. Rising cost of premiums Most health funds in Australia raise their premiums every year. While this helps the funds offset any rising healthcare costs, it can also add hundreds onto the cost of health insurance for many policyholders. The average premium increase this year will be 2.70%. Based on federal government estimates, this means that the average policyholder could see an increase of $125.84 if you’re on a family or couples policy, or $58.24 for singles policy holders. So if you normally pay $100 a month for private health insurance, a 2.70% rate rise would see your monthly premium increase to $102.70. That might not sound like much, but when you add up the costs over the course of a year, it can make a huge difference to how much of your income you're spending on health insurance. Why do health insurance premiums increase each year? The most common reasons why private health insurance funds increase their premiums annually include: <ul> <li>More people accessing health services each year.</li> <li>An ageing population and higher rates of conditions like cancer or heart attacks places a bigger strain on health services.</li> <li>Improved treatments are often more expensive for our healthcare system.</li> </ul> These factors help explain why health funds increase their premiums – and the cost of providing insurance to you gets more expensive each year. They don't always pass on the additional costs to you, their customers, but this is generally why you can expect your premiums to go up. Can you avoid the impact of health insurance premium increases in 2022? The short answer is yes, if you switch to a different, lower cost fund. The experts at <a href="https://compareclub.com.au/health-insurance/quote/cover-type-location/?utm_source=impact&utm_medium=affiliate&tm_campaign=raterise&utm_content=article&utm_term=getaquote&category=health" target="_blank" rel="noopener">Compare Club</a> can help with this. They can compare policies and provide you with options that fit within your budget, saving you time jumping from insurer to insurer and comparing policies yourself. Will you have to serve new waiting periods if you switch policies? Not necessarily. You can switch to an equivalent or lower level of cover without serving new <a href="https://compareclub.com.au/health-insurance/waiting-periods/?utm_source=impact&utm_medium=affiliate&tm_campaign=raterise&utm_content=article&utm_term=getaquote&category=health" target="_blank" rel="noopener">waiting periods</a> on your health insurance. You’ll only need to serve new waiting periods if you have upgraded to a higher level of cover. Also, remember that any unserved waiting periods will transfer to your new health fund. So if you end up switching health insurance to an equivalent cover, you may need to finish these unserved waiting periods before you can make a claim. How do you know if I’m getting value for money from my health fund? If you haven't changed funds or policies in a few years, there’s a good chance you could be getting better value for money elsewhere. And if you’ve moved to a different state or out to regional Australia, your current health fund may not have agreements with your local hospital or dentist. One of the fastest and easiest ways to see how your current premiums stack up – and how much you could save by switching – is to <a href="https://compareclub.com.au/health-insurance/quote/cover-type-location/?utm_source=impact&utm_medium=affiliate&tm_campaign=raterise&utm_content=article&utm_term=getaquote&category=health" target="_blank" rel="noopener">compare health insurance quotes</a>. Why trust Compare Club? Here’s why you should compare health insurance with Compare Club: <ol> <li>They’re independently owned: Unlike some of their competitors, Compare Club isn’t owned by any insurers (or vice versa).</li> <li>They make switching easy: Compare Club has been helping Aussies save on their health insurance for over 10 years.</li> <li>They are 100% Australian owned: Compare Club’s entire health insurance team is based in Australia and comprehensively trained.</li> </ol> * Based on 111,658 policies sold Jan 2017–Nov 2021 # Compare Club compares selected products from a panel of trusted insurers. They do not compare all products in the market. This is a sponsored article produced in partnership with <a href="https://compareclub.com.au/health-insurance/quote/cover-type-location/?utm_source=impact&utm_medium=affiliate&tm_campaign=raterise&utm_content=article&utm_term=getaquote&category=health" target="_blank" rel="noopener">Compare Club</a>. <a id="1191393" href="https://compareclub.sjv.io/c/3546413/1191393/14962"> . </a><img style="position: absolute; visibility: hidden;" src="https://imp.pxf.io/i/3546413/1191393/14962" width="0" height="0" border="0" />

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Rise in insurance premiums set to devastate Aussies

The types of insurance that aren’t worth your while

Who really benefits from private health insurance rebates? Not people who need cover the most

Does private health insurance cut public hospital waiting lists? We found it barely makes a dent