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The True Cost Of Health Insurance

07 Apr 2022

If you’re convinced that your health insurance policy seems to go up in price every year, you’re not imagining things – but why exactly is this the case?

Health-Insurance-Explained

Considering that Australia’s universal health care system is ranked at #9 in the world, many people are often surprised to learn that around 45% of Australians also hold a private health insurance policy. In the event that you are involved with an unforeseen life threatening event, it won’t make much of a difference whether you are in the private or public system. 

However, for those who do hold a private health insurance policy, the motivation for doing so usually boils down to attempting to avoid waiting times for elective treatment or surgery, to choose their own specialist or hospital, or to have the option of a private room, better food or more attractive facilities. 

For many people, private health insurance has long been considered as a luxury, with the premiums ranging anywhere between just $6.27 a month up to a whopping $1,152.75. In addition, the cost of private health cover continues to rise every year. Unfortunately, many policyholders continue to pay these premium prices without fully understanding what they’re funding. 

Why The Cost Of Health Insurance Continues To Rise

On April 1 2022, most health insurance premiums increased by an average of 2.7%. While it’s the second consecutive year of the lowest average annual increase since 2001, some funds will certainly have bigger price hikes than others – placing further pressure on the cost of living for Australians in all corners of the country. 

As a general rule, health insurance premium increases are linked to the rising costs of providing healthcare in Australia. While some of the bigger factors include our rapidly aging population, advancements in medical treatments, inflation and an increase in people using hospital services, there is a darker reason behind why consumers continue to pay top dollar for private health cover. 

Insurance comes in all shapes and sizes to cover a wide range of life events and major purchases, a growing number of Australians are investing in private health insurance for the first time. When shopping around for different policies, many consumers stumble across comparison websites that claim to weigh up the inclusions, prices and waiting periods linked to each individual insurance provider. 

What consumers generally don’t know is that comparison websites plug certain products over others for commercial reasons. In fact, these online enterprises generate funds to run their business and make a profit via sponsored links, showing sponsored links before non-sponsored links, and from commissions paid by the very same providers that are often recommended. 

As a means to help shine a light on these less than transparent business practices, Australian businessman and consumer advocate, Trond Smith has launched ‘The Great Australian Rip Off’ campaign. After working for over eight years to expose these secret industry relationships, payments and incentives, Trond believes that most consumers would be horrified to learn where their money is truly going. 

“The sites claim to save you time and money, but secret and very high commissions have been found to be a big driver in pushing up the general cost of premiums. One comparison website even admitted to receiving a commission of 60% when promoting a particular private health insurance policy, so it’s important for consumers to do their research before signing up to these types of products.”

To protect yourself when shopping for private health insurance, keep in mind that particular products may be promoted or recommended more heavily than others because of commercial arrangements, and be sure to read the fine print when it comes to general inclusions, exclusions, and how much you can expect to pay each year. 

How To Save Money On Your Monthly Bills

Kyco is a member based buying group that ultimately aims to save Australians money on their energy, health and insurance bills. The more members we have, the more negotiating power we have to arrange low, long-term deals with service providers.

Kyco doesn’t play one provider off against another taking commissions of up to 30% like most comparison sites. Instead, we’re leveling the playing field with a low 3% capped commission. It’s free to become a member, and with no lock in contracts or unexpected price hikes, spending less on your annual bills has never been easier. 

To be amongst the first to revolutionise how much ordinary households should be paying for bills, join us today and help make the cost of living more sustainable for everyday Australians.