6 ways to get the best value from your health insurance

Many things change throughout our lives, including your body and your family set-up. As we get older, our health needs can change, too.

One way to get the best value health insurance is to review your cover each year, and make sure you’re only paying for what you need. If your family is complete, for example, you might not want cover that includes pregnancy and birth.

On the other hand, as you get older it pays to be prepared for any hospital stays, and if you don’t have the right level of cover, you might end up with some large, unexpected health bills.

Hospital cover comes in four tiers:

Learn more: Private health insurance tiers explained

It’s key to know that your policy is not just for surgery. With Silver hospital cover, for example, you may get benefits paid towards sleep studies, rehabilitation, pain management and diabetes management. Check your inclusions on your Cover Summary so you know what you can claim for.

Not sure if your health cover is still a good fit? Medibank offers health cover reviews to help you make sure you’re on the right level of cover.

If you have hospital cover, you could also avoid the government’s Medicare Levy Surcharge, where you could be paying up to 1.5 per cent of your income if it’s over $97,000 per year.

The Australian Government Rebate helps to make health insurance more affordable for eligible Australians, and this rebate increases as you get older.

Ever wondered, “Is health insurance cheaper if you pay annually?” The basic answer is yes if you pay before a price rise.

All health funds must review their premiums annually and prices can rise after these reviews. But most insurers allow you to lock in the current price by prepaying for 12 months before premium increases take effect.

This essentially gives you cheaper health insurance because you’ll be getting it at the pre-rise rate. For example, if prices are set to increase by 3 per cent, prepayment of a policy that currently costs you $60 per week could save you around $94 over a year. So prepaying is an easy way to save money on your health insurance.

This option can be great for people with a healthy bank balance or strong cash flow, but it’s not for everyone. Remember to check with us about cut-off dates for prepayments.

Extras cover is designed to reduce your out-of-pocket expenses for non-hospital services that are not usually covered by Medicare. This includes services many of us can benefit from (and use more frequently) as we get older – such as dental, physiotherapy, optical, and even some natural therapies.

But is it worth having private health extras cover? That depends on your needs and which cover you choose.

Learn more: Is Extras cover worth it?

Medibank members with eligible extras cover for 2 months or more get 100% back on up to two dental check-ups every year, including x-rays, at any Members’ Choice Advantage dentist.* So, make use of these benefits to get the best value from your policy.

Most extras benefits reset on 1 January, so keep track in the Medibank app and be sure to use your benefits by 31 December each year.

It can be helpful to have flexible extras cover to suit your changing needs. With Medibank My Choice Extras, you can design (and redesign) a customised policy that keeps working for you as circumstances change.

A health insurance excess is just like a car insurance excess. In other words, it’s an amount that you choose to pay – in this case towards your hospital treatment – so you can get a lower premium.

If you go into hospital, you pay the excess amount, and then your health insurance kicks in to lighten the load. As a rule, the higher the excess, the lower the premium.

Choosing a higher excess can be especially effective for people who are unlikely to go into hospital or have savings set aside for potential medical expenses. If you’re fit and healthy with no known medical conditions, for example, this strategy could be a good choice for you.

Medibank offers various excess options ranging from $0, $500 to $750, depending on the hospital cover.

Excesses apply per member, per calendar year but do not apply to children, or student or adult dependants on a family membership. So, if you’ve already been to hospital and paid the excess, you won’t pay it again for further visits later the same year.

It makes sense that the more proactive about your health you are, the less you’ll need to pay for healthcare appointments and treatment.

Medibank has various programs to help you stay well as you get older.

For example, we offer:

Health insurers have arrangements with specific health providers, doctors and hospitals to give you better value. 

Medibank has Members’ Choice, one of the largest health provider networks in Australia. It includes health providers around Australia, such as dentists and remedial massage therapists. With these providers, prices are capped, so there are no surprises on your bill.

If you’re going to hospital, ask if your specialist participates in Medibank’s GapCover, which can help you pay less at hospital if you’re eligible. Or you can find a specialist who has previously participated in GapCover using Medibank’s Find a Provider tool. We also have agreements with hospitals to limit your out-of-pocket expenses. You can find a Members' Choice hospital using the same tool.

Health insurance gives you greater choice and control over your healthcare, and can help you avoid large, unexpected costs. There are plenty of ways to make the most of it, so why not set aside some time to check if yours still meets your needs?