There are plenty of ways to save money on a health insurance plan. To save on premiums, show that you're living a healthy lifestyle by not smoking and eating right. You can also get lower premiums if you choose a high-deductible health plan.
Another way to save on health insurance is to be a smart shopper. There are a lot of different health plans available. Take the time to compare rates to get the plan that fits your budget best.
There are some easy ways for you to save money and still have the protection you need. Here are four smart ways to do it:
1. Think about the level of health insurance cover you need. While some consumers prefer to have the highest possible level of cover in the knowledge that they will be protected against as many eventualities as possible, this level of cover doesn’t come cheap. You may therefore wish to obtain cover that suits your needs right now, as well as keeping an eye to the future. Most insurers offer a range of products from a low to high level of cover and in recent years more policies have been developed to match the likely medical needs at different life stages. There are some considerable savings to be had by reviewing whether your current policy is right for you; as an example, CANSTAR’s research has found that the premiums on family hospital and extras cover in New South Wales range from $98 to $604 per month.
2. Shop around. There are 35 health funds in the market vying for your business. That means that there is choice and when there is choice there is competition. Take some time to do your research and see what is available. Unlike other insurances, health funds have limited options when it comes to negotiating on premiums with the maximum premium discount they can offer being only one month. They will however offer other incentives such as discounted gym memberships, running shoes or even a bike. Don’t let the incentive be the main reason for change, of course, but provided the policy matches your needs then any discounts or incentives are an added bonus.
And if you do decide to switch you will have comfort in that any waiting periods served under your previous policy will carry across. This means that you may possibly be able to claim from the day you purchase your policy.
3. Get some easy wins with some simple choices. For example, by increasing your excess (your out-of-pocket upfront cost in the event that you are admitted into hospital) you can decrease your premium, which means more money in your pocket now. How much could you save? On one policy on CANSTAR’s database, increasing the excess from $250 to $500 would save you $30 a month. Of course more would have to be paid if you wereadmitted but the ongoing savings are material.
4. You can beat the April 1st premium increase if you pay your health insurance premiums for a year in advance. Provided you have the cash easily on hand (and won’t be running up a credit card debt) this is one way to stay a year ahead of the increase and save some money.
It is now over to you to achieve those savings – make sure your cover is right, shop around, get some easy wins and think about paying in advance.