In Australia,we’re blessed with some of the best healthcare in the world ( and first in,according to international rankings),and our little green Medicare card is a staple in our wallets,ready to be whipped out at the first sign of a cough,cut or CAT scan. And though it’s getting harder and harder to find a bulk-billing GP,at least we shouldn’t ever have to crowd fund an appendectomy.
Despite our relatively benevolent public health safety net,more than half of us () have private health insurance,and that number has steadily grown year-on-year since the pandemic. This growth may have been helped along by several years of – last year’s average was just 2.9 per cent.
When it comes to health insurance,doing some number crunching can help you decide if you should have it.Aresna Villanueva
For many,including families and retirees,private health insurance is a very worthy purchase,that will enable you to skip public hospital waiting lists to access faster treatment,and cover things that Medicare doesn’t,such as optical,dental and physiotherapy services. Some plans even cover gym memberships and massage. But,also for many,private health insurance is bloody expensive.
What’s the problem?
On average,someone between the age of 36 and 59 can expect to pay $3456 a year (about $288 per month) for hospital and extras cover,which is a significant chunk of change,especially given current cost-of-living pressures. And it’s an expense that hasn’t gone unnoticed,with looking to drop or change our insurance to save money.
In fact,cost pressures are the number one reason why people opt not to get private health insurance at all,according to conducted by the ACCC.
What you can do about it
Unfortunately,the question of “do I really need health insurance?” is not easily answered,but if you’re thinking about whether it makes sense to drop your cover,here are a few things to consider:
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.