You pay for private health insurance, so why are you left out of pocket when you need to go to hospital? Most policies include excess each time you make a claim. Learn more.
What Is The Purpose Of Health Insurance Excess?
Many insurance policies, including health insurance, include excess. This additional fee built into your policy is intended to keep your premiums low, meaning you pay less each month but do need to pay more when you make a claim. When you’re admitted to a private hospital for treatment, the excess payment is paid directly to the hospital. Excess payments are a way of making your health insurance cheaper. The higher your excess is, the lower your premiums will be.
How Much Is Health Insurance Excess?
When choosing a health insurance policy, you will be able to make choices about your excess. The highest possible excess you can pay is $750 per person per year. If you have a family policy, this is normally capped at $1500 per family.
When Do I Need To Pay Health Insurance Excess?
The good news is that you only need to pay health insurance excess when – or if – you go into hospital. This means that if you don’t go to hospital within the calendar year, you won’t need to pay that extra amount at all.
In some cases, if you are hospitalised as a result of an accident such as a car crash, your insurer will waive the excess requirement.
Deciding On Health Insurance Excess
When choosing your health insurance policy, it’s important to consider the excess and weigh up your options for selecting a higher or lower excess amount. There are advantages to both options, and your choice will depend on your own circumstances.
Choosing A Higher Excess
When you choose a higher excess, your premiums throughout the year will be lower. This means that if you are not admitted to hospital at all during that time, you will end up saving money.
Choosing a higher excess might be a good option for you if you are a younger, healthier person who is less likely to need medical care. Although anyone can require a hospital admission for all kinds of reasons, certain people are less likely to become sick and injured than others.
You may want to choose a higher excess if you have no health conditions that could require treatment or surgery, do not partake in any potentially dangerous activities, or have never been to hospital before. It is also a good option for people who want to have health insurance but don’t want to pay as much on their premiums.
Choosing A Lower Excess
Selecting a lower excess means paying more in premiums throughout the year. However, this also means that if you do go to hospital, you won’t pay as much upfront.
Lower excess policy options are ideal for people who think it is likely they will require hospital care. This could include people with ongoing health concerns, people who have been hospitalised many times in the past, or people who plan to have surgery or other treatments in the future.