Thousands of people who prepaid their private health insurance to keep their 30 per cent government rebate before it became means-tested in July, may be in for a big shock.
One of Australia's biggest health insurers has warned that these customers may face price rises of 50 per cent next year.
No government rebate and insurers' annual price increase could incur the 50 per cent rise in costs for those who had just prepaid their health insurance says the managing director of Bupa Richard Bowden.
Price rises for health insurance have generally been between five to six per cent in the last few years and take effect in April, having to be approved by the health minister.
''Those people who've paid in advance obviously are not going to drop their cover [in the short term] because they're captured on the lower premium. But the jury is out about what's going to happen to those people in the longer term,'' Mr Bowden told Fairfax Media.
You can also make steps to ensure that you are under the best health cover to suit your needs by comparing health insurance policies.
With the possibility of price premiums rising to 50 per cent, it may be worth checking for a better private health cover just in case you may be paying for what you don't need.