First, a quick guide to how your excess and premium relate to each other.
If your hospital cover has an excess, this is the amount you pay towards your hospital admission (same-day or overnight) before Medibank pays any benefits. You only ever pay an excess if you’re admitted to hospital. Generally, the higher the excess the lower the premium.
It’s important to note - with Medibank, excess does not apply to dependants on family memberships.
Everyone is different so it’s important to think about the relationship between your excess and your premium, how frequently you visit hospital, and what you’ll need to pay if admitted.
Think about this example:
Meet Dave, who considers himself in good shape at the age of 32 and hasn’t been to hospital since he was a kid. Dave joins hospital cover and chooses a higher excess, why? Well, Dave figures that he’s required to pay a premium each year but will only pay his excess if he’s admitted to hospital.
So, Dave chooses to pay a higher excess to get a lower premium because he feels he’s less likely to go to hospital based on his circumstances. Dave is also aware that if he does go to hospital – these things happen – he’ll pay the excess amount chosen.
Medibank currently has a number of excess options ranging from $0 to $500 depending on the hospital product. From 1 April 2019, you’ll be able to choose a $750 excess on most hospital covers to help reduce your premium.
Keep in mind, the excess applies per member, per calendar year and it doesn’t apply to children, student or adult dependants on a family membership.
Frequently asked questions
You may be required to pay the difference between the excess already paid and your new excess for subsequent hospital admissions during the same calendar year.