New data from personal finance company Compare Club reveals Australians could be leaving an average of $1,300 of health insurance extras such as dental, optical, physiotherapy and podiatry, untouched.
Most major health insurance providers including Medibank, Bupa, and HBF are expected to reset extras on January 1, and Compare Club’s data reveals many Australian policy holders could spend less and still get more back just by reviewing their extras cover and cutting out services they don’t use.
For example, the company’s research found most Australian health insurance policy holders can access an average of $1,050 worth of dental rebates, but are only claiming an average of $237.80 a year. This means they’re leaving $812 worth of potential benefits unused.
Similarly, with one major fund, an Australian family of four gets access to a total value of $17,720 worth of rebates on extras, but if a family only uses the policy for basic dental check-ups, glasses and physio, they’ll only claim $2,908, leaving over $14,000 worth of value untouched.
Compare Club CEO Andrew Davis said that at a time when value for money has never been more important, it’s a shame for Australians to be missing out on hundreds of dollars’ worth of medical services.
“Extras cover can give exceptional value if used properly and whilst many smart Aussies understand their policies and get great value, they’re very much in the minority.”
With most funds about to reset their annual limits for extras, Davis said there’s two easy ways to make sure policy holders are not leaving money on the table.
“Firstly, check what you’ve got remaining and book whatever you can. If your kids need new glasses or a dental check-up, squeeze it in before Christmas. You might even have remedial massage rebates in your policy, which is a nice, affordable way to de-stress at the end of the year,” he said.
“Secondly, shop around and look at switching to a policy that’s a lot closer to what you’ll actually use. There’s no point in paying hundreds of dollars for generous annual extras limits if you never get anywhere near using them up.”
According to Davis, there are some good value policies available in the market right now, including ones that will give you 100% back for a check-up, scale and clean at the dentist.
“A large family could make back a fair amount of the cost of the policy in one dentist visit alone,” he said.
He continued: “With many health fund members about to get another price hike in April 2023, it’s never been more important to wring every last cent of value out of your policy. Switching to a better extras package is one way to take back control of your cover.”
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