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Media Release

Policyholders pay for ‘peace of mind’, as health insurance costs increase

New research reveals the most popular reasons Aussies have private cover

‘Peace of mind’ is the top reason Aussies have private health insurance, with most policyholders (68 per cent) agreeing that’s why they hold it, according to new research.1Source: iSelect commissioned i-Link Research to conduct a national online survey between 15th Feb to 22nd Feb 2024. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+

The study from comparison service iSelect, also found another popular motive is to ‘reduce hospital waiting times’ (44 per cent), while more than one in three surveyed say they have private cover for ‘choice of hospital/doctor’.2Source: iSelect commissioned i-Link Research to conduct a national online survey between 15th Feb to 22nd Feb 2024. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+

Sophie Ryan, iSelect spokesperson, said the research highlights the value many Aussies see in having (and keeping) a policy, despite the increasing cost of cover.

“Over the past five years, private health insurance prices have increased by 15.13 per cent on average, with the latest cost hike kicking in just days ago on April 13Calculated as the compound increase in premium from 2015-2024 using industry average increases in premium at Private Health Insurance – List of historical premium price changes by insurer – 1997 to 2022,” Sophie said.

“Every year health funds can apply to the Federal Health Minister to increase premiums, and this year’s approved industry average hike is 3.03 per cent4Source: Private health insurance premiums rise less than wages, pensions and inflation | Health Portfolio Ministers | Australian Government Department of Health and Aged Care.”

Sophie added that according to sales data from the comparison service, this means singles could now be paying around $71 extra for cover, while families could be forking out around $147 more per year5Source: Average dollar figure increase is based on iSelect sales data from 1 January 2023 until 31 December 2023, including Lifetime Health Cover loading but excluding any rebates.

“Health funds were required to let their members know if and by how much their policy was going up, so if you’ve just been dealt yet another cost-of-living blow, it’s time to compare your policy and provider against others and see if you can switch for a better deal,” Sophie said.

“Given that April 1 coincided with the Easter break, you’d be forgiven for missing the memo if you were planning a family getaway or busy buying up chocolate eggs, but it’s never too late to make sure your policy suits your budget, and needs.”

“Despite the value many Aussies see in private health insurance, only a third of Aussies surveyed say they can easily afford it, and those aged between 30-39 are more likely to struggle to pay for their cover, compared to other age groups,” Sophie said.

“We know everyone is busy and comparing health insurance can be time consuming, but it doesn’t have to be. A comparison service such as iSelect can help.

“iSelect’s health comparison experts are on hand to help you understand the 2024 health insurance price rises, plus what’s important to you and what you’re looking for in a policy.”

“iSelect can help you find a suitable policy from our range of funds, and if you do decide to switch, help you take care of the whole process.”

iSelect’s top tips for finding suitable private health insurance
Review your policy regularly – Health needs and financial circumstances change throughout our lives. Ask yourself “what do I need to be covered for?” Review your policy to make sure you’re not paying for things you don’t need and that you’re covered for the things you do.
Could a higher excess save you money on your premium? Generally, the higher the excess or co-payment you are willing to pay, the lower the premium. If you think it’s unlikely you’ll be admitted to hospital in the near future you could opt for a higher excess on eligible policies in exchange for lower overall premiums.
Offers, deals and freebies – Some funds may be offering incentives around certain times of the year and it could be a good idea to shop around and take advantage of any deals and offers! Remember though, a good deal doesn’t necessarily mean the cheapest. Make sure the policy is suited to your needs.
The extras – There is a wide variation between funds on what services are offered and what you’ll get back as rebates under extras cover. Ask yourself if you even need extras. You could consider flexible products that combine your separate extras limits into a single annual limit for you to use across different services.
Know your rights – Did you know that any hospital benefit waiting periods you’ve already served will be protected by law if you switch to an equivalent or lower level or hospital cover? Yes, it’s true!

-ENDS- 

For media enquiries, please contact:

Sophie Ryan

Public Relations Manager

0437 028 104

[email protected]

Sophie is our Public Relations Manager and an experienced journalist who is passionate about making Aussies’ lives easier by saving them time, effort, and money.

As an accomplished media spokesperson and iSelect Comparison Expert, Sophie frequently appears on leading news and public affairs programs, including 7NEWS, Sunrise, and 9News, sharing commentary and research.

She also regularly writes articles for popular websites and publications on various personal finance topics, including insurance and utilities.

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At iSelect, we’re passionate about making Aussies’ lives easier by saving them time, effort and money. We are Australia’s go-to destination for comparison across insurance, utilities and personal finance products made available from our range of providers. Our service is provided at no cost to the customer.

iSelect does not compare all products in the market. The availability of products iSelect compare may change from time to time. Not all products made available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all products compared by iSelect will be available to all customers. Some products and special offers may only be available from iSelect’s call centre or website. Click here to view iSelect’s range of providers.