I have a wife and 2yo daughter. We have basic private hospital insurance, and Medium extras insurance, all with Bupa. We are all healthy.
We have been using much less of the insurance these days. Making 1 claim every few weeks (~$40 for Physio)
I'm wondering if anybody here has tried to cancel their private hospital and/or extras insurance? What was the insurance company's response? What was your experience like?
I had top hosp and mid extra with Bupa. Called and cancelled extras, they said ok.
I put the difference in offset account for when the kids will need braces
I cancelled my basic hospital and kept extras only. I guess I had a "junk" hospital policy, I paid for years and years and never had to make many claims. The only times I needed it the (common) procedure was listed as an exception. As an aging male I was also covered for as many children as I could bear, but wasn't covered for things I might need like a hip replacement. It didn't help me get seen to any quicker or provide me with better care. I only took it out as a tax minimization strategy.
Extras on the other hand has proven to be beneficial to me. I claim more per year on that part of the policy than it costs me.
if aren't likely to need surgery or hospital stay for something (eg Grommets for the kids) cataract surgery later in life then cancel. The public system and waiting times can be awful.
It's one of those things where you don't need it until you need it.
And thats what the insurers promote so you keep paying
Private health offers nothing (hospital) that you can not get on medicare
you are paying a huge premium to not have to wait
but then you still pay an excess and a gap
We had mid-level hospital and mid-level extras with Bupa. We cancelled the extras entirely. It had grown to $1600p/y on extras. Even though we used it a fair bit - 2 adults and 1 kid with dental check-up every 6 months (no gaps), my partner using optical a fair bit and the odd physio for me, it was still a few hundred less than the extras cost. We kept the hospital cover as is, as there are things it would cover that the basic level does not that have been useful for us and may be in the next few years as well.
Due to our daughter having an illness last year, Bupa paid over $70k towards hospital costs, but worth noting that this made zero difference to the treatment we received, the system in Australia essentially has private insurers subsidising the public system.
I'd definitely always have a basic cover to avoid MLS, just shop around for the cheapest you can find, as you don't want to be hit with lifetime loading costs if you decide to do it later down the track as well.
I'd definitely always have a basic cover to avoid MLS
Agree however I would not get Basic and go for intermediate cover
Actually you are offsetting from getting charged by the government by paying for cover.
Therefore, you want to at least make your money work just in case you need it.
Basic cover is absolutely junk and an upgrade is only $200 PA extra.
Otherwise you might as well not have PHI and pay the MLS
Cheers
Also review or speak to your accountant on tax impacts - cancelling the insurance may mean you are penalised next time tax return time (and thereafter) occurs.
In-sewer-ants has to be the biggest scam in history. You pay them money to be covered and then do everything in your power to not have them have to pay out anything. Then when you do need them to pay out, they do everything in their power to try and avoid it. But you have to have it .. just in case. Crazy
Its turned into a fund that props up aged pensioners who utilise the program the most. Younger fit people and families are pretty much donating money to those that are financially somewhat better off (at least in an asset sense)
When i called to cancel mine
They cancelled it
They did not offer any incentive to stay, they tried to get me to keep the extras or to lower to lowest possible cover.
Private health is not worth it anymore not unless it helps you avoid the MLS
I would say extra's have some value but the honest truth is if you get sick the public system will look after you, yes you might have to wait but you will be looked after.
Private health has been clawing back inclusions and increasing exclusions slowly for the past 5 or so years it no longer offers the value it once did. Its dead money