Online Health Insurance

The first step before buying health insurance online is to compare your options thoroughly. Some of the ways you can do so include: 

Make sure you’re comparing apples with apples 

Hospital cover policies come in four different tiers: basic, bronze, silver and gold. Under Australian Government health insurance regulations, each level of cover has to offer a set number of treatments, which are known as clinical categories. 

The cheapest policies available are at the basic level, offering just three clinical categories. The next level, bronze, adds a further 18 clinical categories, and so on until you get to the highest level of cover, gold. These policies cover all 38 clinical categories and offer the highest cover available in Australia (for the highest cost). When comparing policies, make sure you're considering those offering the same level of cover so you know you’re comparing apples with apples. 

The levels of extras cover aren’t as clearly defined as those for hospital cover, generally ranging from cheaper policies with less coverage to more expensive ones with a greater number of benefits and higher claim limits. As such, it’s just as crucial to check that you're comparing policies of a similar level. Since extras policies aren’t as tightly regulated as hospital cover policies in terms of what they’re required to offer, there are more differences between providers to compare. 

Also, make sure you’re comparing policies designed for the same category of customer, such as singles, couples, single parents or families. Naturally, a family policy will cost more than a singles policy, so make sure the policies you’re comparing are of the same type.  

Compare the benefit amounts for each category 

When comparing extras policies, look at how much you’ll be able to claim for each category of treatment. For example, while one policy may allow you to claim $300 for optical services each year, another may offer $450. It’s also important to compare lifetime benefit limits and consider whether these are sufficient for your current known health needs.  

Compare excess and co-payment amounts  

If you’re comparing hospital cover, look at the excess amounts which are available and any co-payments necessary. These can range from zero to $750 for excess amounts. For example, a particular silver hospital cover policy may be available with excess amounts of $250, $500 and $750, with the policy with a $750 excess being the cheapest. Consider whether the difference in premium price is worth paying if you do end up admitted to hospital.  

Also, compare the co-payments you may be required to pay if you do have a hospital stay. Some policies may require $100 a night, capped at $700, for example. However, it’s important to note that excesses and co-payments won’t always be charged by health insurers. 

Inclusions and exclusions  

It’s well worth reading the fine print of each policy and finding out what is and isn’t included in the insurance you’re buying. Above all else, it’s essential to have a health insurance policy with coverage in areas which may apply to you.  

Additionally, some funds may only offer certain benefits if you use an affiliated healthcare provider, which could be inconvenient if there are no such providers in your area. Others may have rules about pre-existing conditions that you should be aware of before buying the policy. 

Waiting periods 

Waiting periods for different levels of hospital cover are mandated by law, but there are no such restrictions on extra cover policies. Some funds may offer to waive certain extras waiting periods, or even offer free weeks of cover, to attract new clients. Compare such offers carefully, as they may provide great value to you if you’re considering swapping health fund providers.