Finder.com.au survey finds 27 per cent of Australians have never switched private health fund

‘Loyalty doesn’t pay off’: Australians who are too lazy to shop around for their private health insurance are losing out on hundreds of dollars EVERY year

  • Finder.com.au survey found 27 per cent of people never switched health fund
  • Another 34 per cent switched just once despite 42 per cent premium increases
  • Finder’s personal finance expert Kate Browne said that ‘loyalty doesn’t pay off’
  • Health insurance premiums are set to rise by 3.25 per cent on average from April 

Australians who are too lazy to switch private health funds are losing hundreds of dollars a year as a result, a consumer products group says.

A survey of 1,162 Australians by finder.com.au found 27 per cent of people had never switched funds. Another 34 per cent had only switched only once. 

Finder’s personal finance expert Kate Browne said Australians were losing out by remaining with the same private health fund, with premiums set to rise again next week.

Australians are too lazy to switch private health funds and are losing hundreds of dollar a year as a result, a consumer group says (stock image) 

‘Loyalty really doesn’t pay off. While shopping around and researching the ins and outs of cover can be complicated, the savings every month could really add up over a year,’ she said.

A Finder analysis of Department of Health data found premiums had risen on average by 42 per cent since 2012.

Australians have a heavy tax premium if they fail to take out private health insurance, with the penalty rising by two per cent annually for every year over the age of 30 they don’t have hospital cover.

By the age of 40, that adds up to an extra 20 per cent.

From April 1, private health fund premiums are set to rise by an average of 3.25 per cent.

The insurance increases, approved by Health minister Greg Hunt, are well above the inflation rate of 1.8 per cent but are still the lowest rise since 2001. 

A survey of 1,162 Australians by finder.com.au found 27 per cent of respondents had never switch funds. Another 34 per cent had only switched once (Bupa insurance branch in Sydney pictured)

A survey of 1,162 Australians by finder.com.au found 27 per cent of respondents had never switch funds. Another 34 per cent had only switched once (Bupa insurance branch in Sydney pictured)

Finder's personal finance expert Kate Browne said Australians were losing out by remaining with the same private health fund, with premiums set to rise next week by 1.6 to 5.9 per cent

Finder’s personal finance expert Kate Browne said Australians were losing out by remaining with the same private health fund, with premiums set to rise next week by 1.6 to 5.9 per cent

Finder calculated that increases could range from 1.6 per cent to 5.9 per cent when they come into force next week.

‘With the 1 April price hike looming and other changes in the form of new tiers, now is a perfect time to review your policy and potentially switch to a health fund offering better value for money,’ Ms Browne said.

‘Insurers know policy increases and changes give some health fund members itchy feet, so they make changing more attractive by waiving waiting periods and throwing in sign-up bonuses.’

A Bupa policy ranges from $82 a month for basic hospital cover to $333 for comprehensive hospital cover.

AHM, backed by Medicare, offers the cheapest basic hospital cover of $79 a month. 

With health premiums in Australia rising by 42 per cent since 2012, a $2,000 annual policy six years ago would cost $2,830 in 2019. 

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