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An ageing population is helping push the cost of healthcare ever higher. (Source: David Koch\/Facebook) <\/p>\n An ageing population is helping push the cost of healthcare ever higher. (Source: David Koch\/Facebook) <\/p>\n
First-class facilities, caring and talented professionals, and some of the best health outcomes in the world. I reckon Australia is still the lucky country when it comes to health care.<\/p>\n
But Australia\u2019s health needs are changing, the population is aging, and it\u2019s getting more and more expensive to deliver high-quality care<\/a>. The pressures on hospitals and insurers<\/a> are laid bare in Private Healthcare Australia\u2019s latest report.<\/p>\n Half of all hospital claims paid by health funds exceeded $10,000 in 2024, according to latest data.<\/p>\n Funds paid out $9.4 billion dollars in claims in 2024 \u2013 more than four times the amount they paid out two decades earlier in 2004.<\/p>\n RELATED<\/p>\n This year\u2019s premium increases \u2013 the biggest in nine years<\/a> \u2013 don\u2019t come as a huge shock, but for Australians already getting squeezed by inflationary pressures<\/a> from all corners they\u2019re another big bill on a growing list.<\/p>\n For me, health insurance is non-negotiable. I value the peace of mind it gives me and Lib \u2013 and the flexibility it would provide should we ever need hospital care.<\/p>\n Instead of culling cover, I\u2019m encouraging Aussies to right-size their policy instead. Here are three ways you might be able to save some money this year.<\/p>\n For years, I thought gold, the top tier of health cover must be best. That was until my wife told me we were paying for pregnancy cover, long after we stopped having children.<\/p>\n We may have overspent thousands on our policies over the years. A costly mistake, and one that many people can\u2019t afford to make.<\/p>\n Health insurance isn\u2019t like wine \u2013 it doesn\u2019t necessarily age well \u2013 and that means at points in life you might actually want to downgrade your level of hospital cover, depending on your needs.<\/p>\n If you don\u2019t have cataracts, need in-hospital psychiatric care, want weight loss surgery or have stopped having children, consider stepping down to a silver or silver plus policy.<\/p>\n For younger Australians, a bronze policy might suit you better. Do an audit on your current cover and compare policies against your needs.<\/p>\n Remember, you don\u2019t need to reserve waiting periods if you\u2019re switching to the same level of cover or below.<\/p>\n Chatting to the team at Compare the Market, a common misconception is that you need expensive extras cover to get really good value. They explained to me that\u2019s not always the case.<\/p>\n Top extras policies include all and sundry benefits \u2013 things like hearing aids, occupational therapy, breathing appliances, orthodontics \u2013 etc etc.<\/p>\n These may be useful to you at certain times but ask most Aussies and they only want cover for things like dental, optometry and maybe physio.<\/p>\n So go through your plan and make sure you\u2019re not paying for things you don\u2019t need.<\/p>\n You might be surprised that some cheaper policies could have more generous pay-out limits for the services you actually want to tap into.<\/p>\n I asked the gurus at Compare the Market to look at my good friend Kylie Gillies\u2019s health cover recently to see where she might be able to save.<\/p>\n They noticed she had set her excess extremely low, which had been driving up her premiums.<\/p>\n A low excess may be beneficial if you need to make a lot of claims \u2013 say if you had several treatments in the calendar \u2013 but usually it makes sense to set it a bit higher and reduce your annual premium instead.<\/p>\n Just a warning \u2013 don’t set it too high if you\u2019re liable to paying the Medicare Levy Surcharge. To avoid it, your excess should be set at $750 or less for singles or $1500 or less for couples and families.<\/p>\n With premiums rising again on 1 April, a quick review of your cover could save you real money this year.<\/p>\n And I think that calls for a glass of wine!<\/p>\n David Koch is Economic Director for Compare the Market.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n Health insurance isn\u2019t like wine \u2013 it doesn\u2019t necessarily age well. (Source: David Koch\/Facebook) <\/p>\n