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Will private health insurance save you money in 2022

private vs public health care
Georgia Carter Updated: 08 April 2022
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Worried about the future of your health and the health of your loved ones? Private health insurance is a great way to ensure that you and your family have access to the best medical care possible. Private insurers offer more choices in medical services and additional benefits that Medicare does not cover.

In 2022, private health insurance could save you money on medical costs. Make sure you are getting the most out of your private health insurance policy by comparing quotes today.

Key facts

  • Private health insurance saves you money in various ways, including out-of-pocket costs and government rebates.
  • Avoid the Medicare Levy Surcharge and Lifetime Loading fee when purchasing private health insurance.
  • If you purchase private health insurance before April 1st, you can avoid the premium price increase and potentially receive sign up benefits.
  • Remember that you can change your health insurance cover at any time – you are not chained to one policy. If the need arises, you can either increase or decrease your plan

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What is private health insurance?

Private health insurers offer an important safety net for those who have difficulty accessing or affording treatment in public hospitals. Private insurance covers some of the costs associated with receiving care from physicians, therapists and other professionals while also providing additional services that Medicare does not usually cover such as dental work.

Private health insurance offers you more choices in your healthcare. For instance, the ability to choose from a surgeon or obstetrician and specialist at any private hospital that is agreed upon by your insurer. You can also avoid tax incentives and charges when taking out private health insurance.

Public health insurance versus private health insurance

The Australian public has access to healthcare through Medicare, which is funded by their tax dollars. This includes private hospitals and other providers in the system that are owned/managed privately such as specialists or pharmacy services for example 

In addition, there’s also a parallel non-profit charity called “Health Care Australia Foundation” (HCF) dedicated exclusively to providing assistance grants so people can afford treatment when they need it most. Private healthcare providers include hospitals and specialists that are owned/managed privately such as their own pharmacy.

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The top 6 ways to save money with private health cover

1. Variety of options: 

You can pick and choose your policy, whether you want a Hospital or Extras only coverage, a basic Hospital and advanced Extras plan, and so on. With all these choices available, you can find the ideal policy that best suits your budget. 

2. Prepay and save: 

Paying your health insurance premiums in advance is a smart way to save money. A few insurers offer you discounts on the entire price if they’re paid upfront for an entire year, so it just makes sense from both ends.

3. Less tax: 

Private health insurance rebates are an excellent way to save money on your premiums. The Australian government offers up to 33% back at tax time, so it’s well worth looking into.

4. Limited out of pocket expenses: 

Health insurance is a great way to protect yourself from the high costs of medical treatments. Sometimes, though not always, it pays off if you have private health coverage with Extras cover because they will pay for services like dental work or physiotherapy that may otherwise be expensive without this extra layer between patient and provider!

5. Avoid Medicare levy surcharge: 

The Medicare Levy Surcharge is an additional tax imposed on high-income earners who do not have a prescribed level of private health insurance. It’s collected by the government and goes towards funding healthcare programs for older Australians. If you purchase a private health insurance plan, you don’t have to pay the surcharge. 

6. Avoid lifetime health cover loading: 

Lifetime Health Cover loading was created to encourage people who are still unsure about their health insurance coverage and want the peace of mind that comes with knowing they have protection. Those who do not have private health insurance after their 31st birthday are required to pay an annual rate. If you have private health insurance, you will not be required to pay the loading cost.

Why you should apply for private health insurance?

Health insurance companies are trying out new ways of tempting people into buying their policies. Many health insurance companies offer rewards for taking out a policy with them, such as frequent flyer points or discounts on gym memberships- these can be great incentives if you’re looking at using your health fund’s services. In addition, premium prices are increasing from April 1st, so it’s important to lock in your health insurance policy before the increase to save.

Tips for comparing health insurance policies

Health insurance is something that everyone needs, but not all types of health care coverage are created equal. If you’re looking for private medical coverages then it pays to do your research so be sure and check out these five steps before buying anything:

Frequently asked questions and answers

  • Does private health insurance save money?

    Private health insurance can help you save money. For one, you can avoid two costly initiatives when purchasing private health insurance. These government costs are the MedicareLevy Surcharge and the Lifetime Loading fee. When you purchase a private health insurance policy, you don’t have to pay the two government scheme costs even if it’s the lowest or most basic plan. Private health insurance also helps you save on out-of-pocket costs, such as dental or optometrist services.
  • Is it cheaper to have private health insurance?

    This depends entirely on which private health insurance company you choose to go with and what type of policy you choose as monthly and yearly premium rates are vastly different from one another. This also depends on your lifestyle and medical healthcare requirements/ For example, if you are starting a family and need medical care for multiple people, it is cheaper to take out health insurance to cover all the costs involved. However, if you are a single adult that leads a healthy lifestyle, you may receive all the medical care you need via Medicare.
  • Is health insurance a waste of money?

    No, private health insurance is never a waste of money as the coverage you receive protects you and your family from the hefty medical costs included in healthcare. Even a basic plan or ambulance only cover plan is worth it in the case of emergencies. Always compare and review a multitude of health insurance companies, plans, and benefits before making your final choice.
  • How can I improve my private health insurance??

    There are many ways one can improve their health insurance premiums. Start by reviewing what is and is not working with your current premium. If you find you are paying too many out-of-pocket costs and want to be covered more for certain services such as dental care, then you may want to increase your Extras cover. However, if you think you’re paying too much for your health insurance and not experiencing true benefits, then you may want to consider either changing your policy or switching to a new health insurance provider. Remember, this is your life and your money and you should take the utmost care when choosing the policy best suited to your life.
  • How to get affordable health insurance?

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