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 1<sup>st</sup> 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


Xtras Health Plan Savings Scheme (XHP)

Dreaded 1<sup>st</sup> 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.


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.