Media Release

New financial year prompts bill refresh for almost half of Aussies¹Source:
iSelect commissioned i-Link Research to conduct a national online survey between 8 to 16 May 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+

New research from comparison service iSelect has found most Aussies with private health cover (69%) have either never switched their health insurance plan and/or provider or haven’t for more than two years.²Source: iSelect commissioned i-Link Research to conduct a national online survey between 8 to 16 May 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+

Concerningly, the i-Link Research study also revealed that within the same timeframe, more than a third of policyholders have never actively reviewed and compared their cover to make sure it suits their needs and budget.³Source: iSelect commissioned i-Link Research to conduct a national online survey between 8 to 16 May 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+

iSelect comparison expert Sophie Ryan explained that during a cost-of-living crisis, it’s unfortunate Aussies could be missing out on savings because they’ve fallen into the ‘set and forget’ trap or wasting money on unsuitable cover.

“Our study found that 85% of people surveyed who switched within the last two years say they saved money.  30% of all switchers within the same period estimate to be saving at least $500 annually,”⁴Source: iSelect commissioned i-Link Research to conduct a national online survey between 8 to 16 May 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 added.

“It’s encouraging that almost half of Aussies (48%) say the new financial year is prompting them to review common household bills to make sure they’re getting a good deal,⁵Source: iSelect commissioned i-Link Research to conduct a national online survey between 8 to 16 May 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+ and I’d urge them to put health insurance on top of the list, whether they hold a policy or not.”

Around this time of the year, Aussies may be looking for ways to boost their tax refund and may not realise health insurance can have an impact.

Sophie said higher income earners without an appropriate level of hospital cover may have to pay a Medicare Levy Surcharge for every day they don’t hold a policy during the financial year.⁶Source: https://www.privatehealth.gov.au/health_insurance/surcharges_incentives/medicare_levy.htm

“Income thresholds for the surcharge increased on July 1, so uninsured Aussies who’ve had a pay rise recently may not know that they could end up having to pay this extra tax, when instead, they could find hospital cover for a similar price,” Sophie explained.⁷Source: https://www.privatehealth.gov.au/health_insurance/surcharges_incentives/medicare_levy.htm

“While taxpayers received a welcome tax cut from July 1 to help with cost-of-living pressures, the iSelect-commissioned study suggests it may not go far, with ‘groceries’ the top pick for where surveyed Aussies are planning to redirect their tax savings.”⁸Source: iSelect commissioned i-Link Research to conduct a national online survey between 8 to 16 May 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 said to assist with their new financial year bill refresh, confused or time poor Aussies can enlist iSelect’s trained comparison experts to take on the hard work for them.

 “As well as helping you understand the Medicare Levy Surcharge, they can help find cover to suit your needs and budget by comparing your policy against others from our range of policies and providers, and can even make the switch for you,” Sophie explained.

“They can also help out when it comes to comparing other common household bills and expenses too, such as your car insurance, or energy plan, saving you time and effort.”

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!

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