The Government will soon be approving the health funds’ applications for a price rise. The Government will make the usual noises about keeping the health funds honest and keeping the price rise to a minimum. With over 70% of the market covered by for-profit health funds it will be difficult to see the government overcoming the desire of the industry to maintain profit margins following a period where fund surpluses nudged a billion dollars.
One way to beat the price rise is to pay your health premiums in advance. Paying premiums in advance allows you to defer the price rise until when the next premium is due. By paying a yearly premium in advance you can lock in the old price for a further 12 months. This could save you hundreds of dollars in premiums over the next 12 months. If you have the savings to pay 12 months in advance you should give it serious thought. If this makes sense to you, you need to act before 31st March.
If your health fund does not allow you to do this then you could consider using a health fund that does.