Why thousands of Aussies plan to cancel their health insurance tomorrow
Nearly one in four Australians plan to downgrade or cancel their private health insurance cover when premiums increase this week, leaving many worse off.
Last month, the federal government approved an average premium increase of 4.41 per cent.
It is the biggest private health insurance price hike since 2017 and will cost Australians an extra $80 to $160 a year, depending on their cover.
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Insurer NIB has been called out as one of the worst offenders for charging single parents far more than couples to add a child to their policies. Chris Hopkins
The actual premium change will vary between insurers and policies, but some insurers plan to raise prices by an average of up to 5.47 per cent.
Some Aussies aren't willing or able to cop such a massive price hike in a cost-of-living crisis.
Up to 23 per cent intend to downgrade their cover or cancel their policy entirely due to the price hike, according to a survey from AI digital broker Konkrd.
The move could leave vulnerable people without private health insurance, or settling for cheaper policies that don't adequately cover their needs.
Bupa will be increasing its premiums by 4.80 per cent. Getty
Some may consider shopping around for a cheaper policy when the price hike hits.
But 35 per cent of Australians admit they have trouble understanding differenceand nearly three in four have read only some or none of their policy documents.
"When premiums rise, households often reconsider their cover, but decisions made without clarity can create risks," Konkrd co-founder Scott Wilson said.
"If affordability is a concern, reviewing policies, adjusting cover levels or comparing providers can often be more effective than abandoning cover entirely."
Search the table below to find out how much your insurer will hikes prices tomorrow.
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The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
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