Worried about the ever rising cost of Extras Health. 10 reasons why XHP is the best for Extras Health

This is the new paradigm, why lose it when you can keep it with XHP. For a very long time the old paradigm has been playing out and is broken, simplest proof is people dropping their cover as it is getting unaffordable with the increasing costs every year and add to that the ever increasing GAP. Not so with XHP,as all you unused funds accumulate and can help to eliminate the gap

Use It or Lose It

Private Health Insurance Extras Cover (PHI)

You know how, at the end of each year your account balance resets to “0” and your old balance is lost forever even if you never made a claim.

What this means is all your efforts to look after yourself is in vain and you have lost your money that you could have kept for future health needs. What does this do for your peace of mind and your intention of having private health insurance

In fact if money were to accumulate you would have had a balance to start with.

Stop losing your money year on year. You now have an alternative with XHP

Some funds offer you higher limits over time. Now ask yourself, how often have you used the higher limits (eg. Major Dental) - Not often, like most people. If you have the need for higher limits, you may be faced with one of two situations. Pay the GAP and any other costs or spread it out over time may be years to maximise the benefits whilst tolerating the discomfort it in the meantime.

How does that equate to “Peace of Mind”

o put it in a nutshell with Private Health extras cover its a case of

Use it or lose it!.

Is this a problem - Yes!!

  1. You may be putting off necessary care or treatment due to costs which will only cost you even more in the long term
  2. Your Health suffers over time and you may be forced to put up or accept less than optimal care.
  3. Your overall health and wellbeing could suffer
Use It or Lose It

Xtras Health Plan Savings Scheme (XHP)

You do not have to be a rocket scientist to know that if you keep your unused funds at the end of every year. It would accumulate over time to create a nestegg. Wouldn't that give you peace of mind of knowing you have the funds to support you when you need it.

What this means is that you can afford the health care that is optimal for you and your needs.

In fact some people are already doing just that and reducing their costs and enjoying better health outcomes.

XHP provides a platform and structure for you to save your money in a dedicated health savings account where you not only accumulate your money but you earn interest as well on your money. We call this the Rollover Health Plan, so you can be sure all your health dollars are working for you.

To put it in a Nutshell -

Use it or Keep It

Is this an advantage -  YES!!!

  1. Your money at your call
  2. You can be Proactive with Preventive care to enable health and save money.
  3. Eliminate the “GAP”

FACT

Did you know as a member of XHP with time you can eliminate “COST PRESSURES”

So lets compare the pair for Betty who is 32 and confused as to which way to go with her choice. Imagine that Betty was doing this 10 years ago and she was tossing up her decision between private health insurance extras cover and Xtras Health Plan or XHP for short. Let's compare “apples with apples” for the comparison the following assumption have been made

  1. Contributions to Private health insurance Extras cover and XHP is exactly the same - $5/day
  2. No interest earnt has been added to the calculation for XHP
  3. Betty is healthy and has not been to a health provider in the last 10 years
  4. Funds in both PHIe and XHP are used for health needs only
  5. XHP Account balance is net of XHP Scheme Fee(1.7%) and assumes platform fee @$87/year
  6. Annual premium increases have been excluded with PHIe.

Balance with Private Health Extras Cover over 10 years with no spend

This graph summarises what happens if Betty does not use her private health extras cover because at the end of each year be it financial year or calendar year that your private health insurance company follows, your account balance resets to “0” so Betty and many like her have lost all the money they paid for the private health extras cover.

Balance with Xtras Health Plan over 10 years with no spend after fees and charges

At XHP the story is entirely different, because unused money rolls over to the next and so on. It does not matter that Betty has not been to a health practitioner. Betty has accumulated her money over time and is in a much better position that people with private health extras cover to afford better care when she needs it.

Point of Consideration:

So how do you think? Betty has fared over the last 10 Years not using her extras cover

Comparison Private Health Extras Cover Xtras Health Plan Savings Scheme Results
Net Costs over 10 years $18,250 $1180 Betty, saves $17,070 with XHP
Account Balance $0 $17,070 Betty has much more of a financial buffer

Formulas used for the graph: No spend View

Now let’s look at a scenario where Betty is spending $1000 per year on Extras Health Needs. Data from APRA quarterly statistics for Dec 2018 released on 14th of Feb shows that Private health cover paid 53.16% of the service fee submitted for claims leaving the member with a “GAP” of 46.84% over and above the premiums already paid by the member of private health extras cover. This simply means your liability is not limited.
So here is the comparison and using the same data from before and accounting for a gap of 46.84% the scenarios is

Spending $1000 per year and gap of 46.84%

The real cost of extras cover is the premiums paid and the GAP paid for services used. Data from APRA clearly indicates that members have an out of pocket expense of 46.84% of the invoiced amount on average.

Extras health cover operates like a coupon that pays a certain amount and you are up for the rest and guess what the coupon is not free either.

Spending $1000 per year and Saving unused funds

The difference with XHP is obvious even with the spend of $1000 per year. Key point of difference is the rollover of unused money year on year which creates a nestegg for the time where you may hit upon unexpected spend.

Members of XHP are better poised to be able to afford the care they need into the future as they are much better off from a financial aspect

Point of Consideration:

So how do you think? Betty has fared over the last 10 Years using her extras cover and spending $1000/yr.

Comparison Private Health Extras Cover Xtras Health Plan Savings Scheme Results
Net Costs over 10 years (Premiums paid + GAP paid) $22,934 $1180.20 Betty, saves $21,753 with XHP
Actual Benefits received $5300 $10,000 Betty's Account balance after spend is $ 7069.80
Money left in Betty's account after 10 years $0 $7069.80 Betty has much more of a financial buffer with XHP
GAP $468.40 each year $0 as balance is greater Nil out of pocket expense
We will leave it with you to calculate your return on investments that you make with private health extras cover and XHP

Formulas used for the graph: Spend $1000/y it is assumed that PHI pays 100% of the annual limit of the membership. To know more about your own cover, please check with your extras insurance provider. View

FACT

Betty is better off with XHP as she is miles ahead financially to take care of future needs

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.

Out of Pocket expenses is referred to as “GAP” and is one of the main reasons often cited by many people as to the their reason to not use their cover. Medicare does not cover Extras Health and the amount of cover offered is arbitrary and varies between various private health extras insurance providers.

Gap or out of pocket expense is an additional amount of money that you need to come up with to pay for your extras cover over and above what you have paid as premiums to have extras health cover. Irrespective of how long you have been with your private health extras cover provider you may have a “GAP” to pay.

At XHP, we aim to make that a thing of the past by enabling you to accumulate your money which over time has the potential to “eliminate the GAP”. Your gap is dependant on your account balance. Used wisely you may be able to eliminate your GAP totally as your account balance will be greater than the spend.

Private Health Insurance Extras Cover (PHIe)

Mind the GAP

Gap with your extras cover can arise due to

  1. Limits to your Claimable Benefit
  2. Arbitrary limits set for each service type by private health extras provider. eg amount covered for physio sessions required.
  3. Fund rules - where each fund has it own way of calculating the benefit or how much it will cover.
As a general rule the more you pay and higher the type of cover you have with your extras health provider, the higher the benefits you will receive per service. So the catch being you need to pay more to get more. Question though, is it better value?

Some health funds have preferred provider's where their members are able to access some basic services at no gap. This too is limited to the type of cover that you have with the private health extras health provider coupled with limitations on what is covered under the no gap arrangement.

Private Health Extras providers who operate such a scheme, have contracted health providers at a fixed fee schedule. But if you ever had the misfortune of needinf more than just the basics covered by the extras cover provider you will soon find out that you have to pay a gap despite the fixed fee agreement. This is because you have either reached your annual limit or the service has a fixed benefit that is paid.

Data from APRA, shows the average gap across all health funds to be 46.84% calculated from service fees claimed to benefits paid out by private health extras providers.

The GAP translates to increased costs to you as a member as the gap is payable by you over and above the premium you have already paid for the extras health insurance to be a member.

Do yourself a favour, if you would like to save money join XHP

Xtras Health Plan Savings Scheme (XHP)

Mind the GAP

Often the two main reasons a lot of people mention as to why the purchase extras health cover, is for peace of mind and the other to reduce out of pocket expenses or “GAP” to pay when the need arises.

Our research and countless research has shown that many people just simply drop their cover as they are not able to afford the cover with the amount of gap paid on top. For some this has meant putting up with discomfort which over time has an effect on the individuals health and wellbeing. At XHP, we get you and for that very reason we have designed XHP to make

  1. Healthcare affordable, and for peace of mind of knowing that unused funds accumulate in a dedicated account and earns interest as well for you.
  2. “NO GAP”, unless you have spent all the balance in your account. If your account balance is greater than the invoice amount you will never have a GAP.
  3. Quite simply you are in control of your health decision and health expenses on which services that you need to use and how much you wish to spend. Assuming you are careful on how the funds are spent it is very likely you may have adequate funds in the account to cover the big ticket item that you did not foresee coming.
  4. With preferred providers you will have the comfort of knowing the fee schedule is fixed in relation to the maximum fee that can be charged enabling you to quickly make informed decisions.

You are in the driving seat with XHP and can start to take advantage of the dedicated health savings scheme. To become a member, click here

FACT

With XHP as your unused money, rolls over each year you will build a nest egg over time to cover most of your extras health needs.

Let’s explore ”the dreaded GAP“ using Betty who wants to have a dental implant for her missing tooth as she is sick of the removable plates which is not attractive.

Assumptions:
Betty has had

  1. Health cover for 10 years and has been paying $1825 per year,
  2. pends on an average of $1000 per year on extras health needs
  3. Gap payable is 46.84%
  4. Cost of the dental implant procedure is $5000

Private Health Extras Cover (Numbered List for SEO)

Premiums Paid over 10 years = $18,250

Total of services used of 10 years = $10,000

GAP paid on services over 10 years = $4,684

Cost of dental implant = $5,000

Gap payable on implant = $2,342

Net benefit for implant = $2,650

Net cost over 10 years = ($18,250+$4,700+$2,350) = $25,276

Net benefits over 10 years = $10,000+$2,658 = $12,658



Net GAP over 10 years = $12,650

Xtras Health Plan Savings Scheme (Numbered List for SEO)

Premiums Paid over 10 years = $18,250

Net balance after XHP Fees = $17,069.75

Total of services used of 10 years = $10,000

GAP paid on services over 10 years = $0

Cost of dental implant = $5,000

Gap payable on implant = $0

Net benefit for implant = $5,000

Net cost over 10 years =1180.25

Net benefits over 10 years = $10,000+$5000 = $15,000


Net Balance over 10 years = $2,069.75

You are better off with XHP. Stop adding unnecessary financial pressure. Join XHP and save the smarter way. You and your family will be glad you did.

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.

Premium rises every year is a common feature with private health extras cover. But are you getting value from the increases?

Come the 1ST of April of each year, your health fund premiums are going up whether you like it or not. Unfortunately, you don't have a choice in the matter and this is a serious issue for many people and many households vex redoing their budgets for peace of mind to afford extras health cover as hospital cover is free if you are happy to go to your base hospital. Recently a lot of people have been voting with their feet. Health fund premiums, have been increasing above CPI and wage growth. Adding to cost of living pressures.

At XHP, we get your pain. Its upto you to increase your contributions to suit your lifestyle. However, we do recommend that you increase contributions by CPI amounts to keep pace with inflation.

Private Health Insurance Extras Cover (PHIe)

Dreaded 1st of April premium rises

Australian Government is keen on ensuring health care is available and accessible for all. This is achieved by a combination of public and private sectors. Extras health cover via the public sector is very limited and one has to meet strenuous eligibility criteria. Hence most extras health treatment is provided by the private sector and having the means to pay for the service is important. To support the uptake of insurance Australian Government has a raft of carrot and stick measures.

Premium rise is often defended by private health insurance providers as a necessary rise because more and more people are using their cover. Isn’t that why one would buy extras health insurance, you are only using what you are entitled to by virtue of you paying the premium for health cover from the extras health provider of your choice.

Average premium increases in the last 8 years is 5.37% which is not in line with CPI or wage growth.

The Conversation website , has a chart that tracks the private health insurance premium rises compared to wages and CPI. However bear in mind that it is not specific for extras cover cost increases.

Adding to rising cost of cover is the GAP and decreasing level of benefits paid, which results in a financial burden for people resulting in most people putting off the much needed health care and tolerating the discomfort.

Do yourself a favour, if you would like to save money join XHP

  1. http://health.gov.au/internet/main/publishing.nsf/content/privatehealth-average-premium-round
  2. https://theconversation.com/private-health-insurance-premium-increases-explained-in-14-charts-92825

Xtras Health Plan Savings Scheme (XHP)

Dreaded 1st of April premium rises

Our vision at XHP is to “Enable Health and Save Money”

Created ground up to address many of the issues with the traditional health fund extras cover, XHP sees its core purpose to enable health of our member by saving the money where possible. The approach taken at XHP is to conserve unused money and allow the member to make adjustments to their contribution to fit in with their finances.

We get that people can have periods of financial strain and hardship, a simple fact of life and flexibility is most likely the solution to help them tide over the difficult period. Being forced to pay an increase when you can least afford it is not something we agree with as is the way with Private health extras insurance cover.

Our members can drop the contributions down to the minimum of $2.50/day at time of stress or even better opt to suspend their account for a nominated period of time with full access to the funds they have built up over time. However a nominal suspension fee applies

Given that circumstances change our members can top up their account or pay a contribution to reactivate their accounts.

How is that for simplicity.

FACT

Vary your contributions to suit your lifestyle needs even suspend for a period of time if required.

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.

Shouldn't you have the freedom and the ability to decide how to use your own money, We think you should be able to at XHP

Being able to afford the care that a person needs without being stressed out about finances and how to arrange things to be paid off is not just important to the person recovering but also for those who are near and dear.

At XHP we think you should be able to use your own money that you have accumulated over time to pay for expenses such as hospital gap and your medicines

Private Health Insurance Extras Cover (PHIe)

Limited to Extras only

With Private Health extras cover, it is limited to extras cover only and cannot be used to pay for your pharmaceuticals unless you pay more for pharmacy cover as part of your extras cover. How about paying the gap at your GP visit and you can be absolutely sure it can’t be used to pay your hospital gap.

Ex CEO Shaun Gath told News Corp Australia extras cover was an “irrational” purchase for most people because the premium paid was more than the benefits derived 1.

  1. https://www.news.com.au/lifestyle/health/experts-say-having-extras-private-health-insurance-doesnt-make-financial-sense/news-story/269e157dade739719679c44a7ec0b655

Xtras Health Plan Savings Scheme (XHP)

Limited to Extras only

Let us make it an outdated practice by putting limits on what you can use your own money for

Use your own money in your account as you have the need for. The only restriction being it must be for health. The funds in your account can be used to pay hospital gaps, medicines and even cover the gap of your GP visit. As long as it is related to your health needs, its all cool at XHP. You will need to upload the health invoice for verification before funds are paid out.

Rules that apply with regards to your funds are

  1. Health provider must be registered in Australia and current with AHPRA
  2. Health business is an Australian Business and has a valid ABN
  3. Invoice for treatment must be submitted for verification

Funds are only paid to a bank in Australia

FACT

Use your money with XHP to pay hospital gaps, GP visits and more

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.

Feel like you have hit the brick wall, no one listening to you, feeling alone, confused by the complexity of rules that are not making any sense to you.

Overwhelmed by complex fund rules is a feeling shared by many people who have private health extras cover. Here is a real example, Jane has two children who play footy and wanting to ensure her children are protected, she goes off to have them fitted with mouthguards. Impressions are taken and the dentists office has turned them around in the same day as Jane needed them in a hurry. Guess what her private health cover did not pay a cent, In its own wisdom, it deemed that a week must pass between the impressions being done and the mouthguard being fitted. In the meantime good luck with not getting injured or sit on the bench and dream of playing.

Private Health Insurance Extras Cover (PHIe)

that sinking feeling of being taken for a ride

You know that sinking feeling that you thought you had the cover for the service you needed, just to find out that you have reached the limit or other reasons that do not make sense. Now what?. Sorry to break it to you but you are a 100% out of pocket over and above what you paid as premiums.

What about if you need a few more sessions to recover, and you have hit limits, caps and other terms.

In fact, you should check your health cover to be sure of how much and what you are covered for.

Xtras Health Plan Savings Scheme (XHP)

Complex Private Health Insurance Rules

It's your money after all, you have been saving up diligently for your extras health needs. We don't have fancy words such as ultimate, platinum or premium for it - Well if you like it let's call it My Plan.

Which is why we say XHP is Member's Own. They have the full freedom of making decisions and implementing their own plan.

This is how it works.

Use the funds as you see fit for your health needs. At XHP there is no limits, tiers or caps that you can apply the funds for a service that you need. So if you need more physio sessions to recover then you simply apply your funds to physio sessions. Just make sure you have adequate funds in your account or you will have a gap to pay. So with XHP the decision on how to spend your money is entirely up to you.

Our advice is simple, prevention is better than cure. As Preventions is often cheaper and more effective than a costly fix.

FACT

XHP is the real Members Own health plan. Where you as the member is in full control of all your decisions and choices. You profit or lose from your own health decisions.

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.

With the smorgardsboard of choices that is offered by private health extras providers that range in cover level, it not only is confusing its difficult to know what is right for you.

Well there is a limit, sub limits and combined limits on the services that you need. Lost you are not on your own. There is no universal definition and its application varies from one fund to another. Finder.com.au has an article that explains it as Annual limit is the maximum that you are entitled to, for a particular service in that year. Sub limits may apply to services within the annual limit and is sometimes deducted from the limit, combined limit aggregates various services under one heading and may have its own limit. There is no universal definition

Private Health Insurance Extras Cover (PHIe)

I was never told about it.

Inducements such as waived waiting period, movie vouchers are designed to get you in through the door, ask yourself this simple question? Were you told about what the limitation of the cover is, what is covered or what's not.

All too often people find out after the event, leading to frustration and feeling absolutely let down or worse sucked in.

The amount of benefit for a health service is either a set limit or a percentage benefit.

Set Limit has a cap of what will be paid by your insurer for the particular service.

With a percentage benefit a percentage of the cost of the service is covered and the balance is upto you to pay. Some funds allow you to aggregate funds from other services to use for a particular service.

If you do not use the benefit for the year, then you lose out on the benefit for good. An article by Choice magazine 1 titled “Less for more” does a fantastic job of explaining this.

  1. https://www.choice.com.au/money/insurance/health/articles/is-your-extras-policy-losing-value
  2. https://www.finder.com.au/health-insurance-annual-benefit-limits

Xtras Health Plan Savings Scheme (XHP)

no limits

Straight up, there is no limits for any service. How much you spend on a service that you need or which services you choose to use is again your call. Furthermore you may not use all the services in a given year so why lose out. We think you should accumulate your unused funds year on year as you may need the service sometime in the future. How about family members who don't use certain services but need more of other services. It is only fair that you be in control of your health and financial decisions

We are not sorry that we don't have limits, sub limits, combined limits or even tiered benefits that apply. The only limit that applies with XHP is your account balance and the 3 simple rules of health provider to be registered in Australia, service must be availed in Australia and the health business must be registered in Australia

FACT

Your account balance is your limit along with the 3 simple rule

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances

Sharing and caring is what has made the world go around for years. Being able to share a gift of health can make a difference for someone you care about

You don't need a doctor to tell you giving feels good. Anyone who has given time, money or other resources probably already knows this from experience of how the inner self expands and happiness prevails.

Scientific evidence of giving has shown a lot of health and wellness benefits for the giver, for the recipient it could be the most welcome relief from suffering and torment.

Private Health Insurance Extras Cover (PHIe)

it's only for me

Go get your own, it's only for me and this is extenuated by proof of showing who is covered with you. Only those whose names are explicitly on your membership is covered for any benefits.

If you really care and want to help out a friend or family, you will need to come up with the money and add them to your cover. What if you want to help a stranger, that may not be possible.

What if, it could be the difference between someone having a better quality of life and being productive vs suffering ill health?

What if that person is your own family member like your child who is not on your cover and cannot afford extras health cover?

Xtras Health Plan Savings Scheme (XHP)

giving is caring Evidence of helping other and the benefit to ourselves is well documented. Think back to natural calamities when people pull together to help those affected. How about if you are able to help out a sibling, a friend or even a neighbour. Well you can with XHP. You can send a gift of health to anyone you care about. They can use the funds to pay for the much needed health service at a preferred health partner. Your small gift of health could mean the world of difference for the recipient of your gift and what's more it they don't use it within the year. You don't lose it all. You get 80% of your gift amount returned to you. Now that's an X factor don't you think?

FACT

Give the gift of health to someone you care about.

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.

Circumstances may change at any time and you may not want to continue to have extras cover.

Sometimes enough is enough and you want to call it quits. Such decisions have consequences and can result in you kissing goodbye to your money that you invested for your extras cover. Overtime this could be thousands, at XHP we do it different and refund you 80% of your account balance. Why kiss all your money goodbye

Private Health Insurance Extras Cover (PHIe)

Cancel - Total loss with PHI

With a change in circumstances you may be able to negotiate a payment plan with your health fund. Some health funds do allow you to suspend between 2 to 4 years provided you meet certain guidelines such as financial hardship, you are overseas, or in jail.

During the suspension period you may not have any benefits paid if you seek treatment leaving you fully exposed to the cost of service

But, If you cancel your cover you will lose all your money that you have been investing for your future health.

Xtras Health Plan Savings Scheme (XHP)

Cancel - Total loss with PHI

Circumstance do change and not all of those circumstances are within your control. It may mean that you have to make decisions on weather to continue or not.

With XHP you have two options

  1. You can suspend your contributions upto 3 years and still have access to your money for your extras health use or
  2. You can cancel your account and get a refund of 80% of your account balance after all outstanding invoices have been settled

Either way you don't leave empty handed.

In the event of death, 80% of your account balance is returned to your estate. So none of your money is lost.

FACT

If you cancel your account you will get a refund of 80% of your account balance on settlement of all outstanding invoices.

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.

Financial hardships combined with high cost of living may force your hand into making a decision that may not be in your favour

Ever rising costs of living combined with negligible wage growth has been creating a lot of stress in many households. Not many find favourable terms with their extras health cover provider either leaving them exposed to big out of pocket expenses or putting up with discomfort

Private Health Insurance Extras Cover (PHIe)

Suspension Limited with PHI

Suspending your policy is like putting it on hold. No contributions or premiums are payable during a period of suspension, but no claims will be paid for services or treatment provided within the suspension period either.

You can suspend your health cover for one of two reasons - if you are experiencing financial hardship or if you are travelling overseas for a period longer than 2 months. This means that you are exposed to out of pocket expenses or you may have to put up with the discomfort. Is this the reason why you signed up in the first place. The answer is a straightforward and simple NO

What's worse, is if you end up suspending for greater than 3 years and then you wish to take up private health extras cover, you may have to pay Life Time Loading

Xtras Health Plan Savings Scheme (XHP)

Suspension Limited with PHI

XHP is all about enabling health and saving money for our members. We are member driven and will go the extra mile for our members at times of hardship.

You can suspend your account for any reason. It may be that you are facing financial hardship or just want to pause your contributions for a little while. This is done online from your platform. A nominal fee will apply and after you have accepted the terms and conditions you can suspend all contributions or premiums.

Compared to PHI(e), you will still have access to your money for your extras health needs.

Once the storm has passed, a simple payment of contribution is all it takes to reactivate your account

FACT

If you cancel your account you will get a refund of 80% of your account balance on settlement of all outstanding invoices.

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.

Risk with investment platforms or even DIY investments are high and often demanding on the investor. The returns are not always guaranteed. What if it works against you? You will be left with nothing. Then what, if you have an extras health need – put up with the pain or get into more and more debt.

You can break the cycle and take control with XHP with minimal risk.

Investment platforms often advertise higher rates of returns, this is not guaranteed either and add to that the costs associated with investment platforms. For some people the returns may be eroded by fees and charges. Most investment platforms have a lock in period of investments where in you may not have access to your money

Private Health Insurance Extras Cover (PHIe)

Investment Platform-Conditions Apply

Investment platforms offer a wide range of returns for investors along with the risks associated with the such investments, which can fluctuate. If you are not a sophisticated investor, you may rely on a broker or a financial adviser. There may be fees and charges that apply, and the funds could also be locked in for a period of time. Investment platform whilst attractive is not specific in terms of what the funds can be used for. As clearly the objective here is for general growth of funds and not for health.

What if the funds you set aside are lost or diminished in a financial meltdown. For example, what if your funds suffered losses like in the GFC when the ASX fell by 54% over 16 months.

https://www.marketindex.com.au/history

Xtras Health Plan Savings Scheme (XHP)

Investment Platform-Conditions Apply

XHP is a health specific platform where the objective of the Scheme is to help you accumulate money in a low risk environment for your health needs. The funds are held in cash or cash deposits that return an interest which is paid to you in full and added to your account balance.

Significant Risk associated with your funds with XHP are

  1. Interest rate fluctuations offered by banks
  2. Collapse of the Bank where funds are held
  3. That you may not have enough funds held with XHP to cover required extras treatment at any given time. If this is the case, then you will be required to meet any difference between the cost of treatment and the funds held with XHP resulting in a GAP to pay.

Whilst the interest rates vary. The risk associated with Australian banks folding up is minimal as the banks are well regulated

FACT

XHP investments are cash deposits that are low risk and not subject to market volatility

Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.