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 your 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”


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


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.