- Address: Suite 2, 36 Macaree Street, Berserker, Rockhampton, Queensland 4701
- Phone: 07 3088 6969
- Email: info@xhp.com.au
- Xtras Health Plan Ltd AFSL500574
- Xtras Health Plan Savings Schemes 627076411
- Xtras Health Plan Ltd ACN 618020885
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.
Gap with your extras cover can arise due to
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
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
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
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
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
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
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.