Myth Busters – Cheaper is better

There are numerous comparison services which enable us to compare the prices of policies and allow us to better understand which items and services we are able to forego, in order for us to reduce our yearly premiums. According to a recent finding by the Private Health Insurance Ombudsman, a high level of complaints received have been from people who have opted for cheaper “budget” policies. For the year 2015-2016, the Commonwealth Ombudsman have reported a total of 276 complaints relating to Hospital exclusions/restrictions, with an average of 70 complaints per quarter.*

These hospital exclusions/restrictions related complaints are not surprisingly the second highest type of complaint, as these enquiries are from people who had planned to, or have gone into hospital requiring particular procedures and services to be performed, only to find out they are not covered under their budget plan. Despite the appeal of an initial cost saving on a cheaper policy, this doesn’t always result in the best option. In a situation where you need to pay for services out of your own pocket as your policy doesn’t cover a particular service, this means you are paying more in the long run. The type of policy and which services and items each one covers can be confusing and can cause uncertainty amongst all of us, especially when there are services that you think you are unlikely to use. To ensure that you are protected under a policy that is most fitting to you, please call our friendly customer service team on 1300 368 390 and we can assist to find you a cost effective policy that best suits your needs.

*Private Health Insurance Ombudsman Quarterly Bulletin 81

Download July 2017  HealthWise