COST OF LIVING CRISIS IMPACTS PRIVATE HEALTH INSURANCE COVER

Millions of Australian health fund members don’t believe they have adequate insurance as the cost of living crisis hits hard, new research shows. A survey by comparison site Finder found a staggering 32% of Aussies with private health cover wished they were on a higher level of cover. That’s 4.3 million Aussies who feel underinsured. The research showed 1 in 3 (32%) health fund members have Basic cover, 27% have Silver, and 16% have Bronze. Whilst 1 in 4 (25%) insured Aussies have Gold cover – the highest available cover – this is naturally most taken up by older Australians. Roughly 2 in 5 (41%) baby boomers are on Gold compared to just 1 in 5 gen X, gen Y and gen Z (20%, 21% and 18% respectively). James Martin, insurance expert at Finder, said the cost of living crisis is causing a rise in underinsurance. “The cost of insurance has increased like almost everything else and some Aussies are reducing coverage to cope," he said, Mr Martin said it was becoming increasingly difficult for people to absorb rising insurance bills. “Dropping to a lower level of cover is a quick way to reduce monthly premiums, but the risk is you won’t have enough insurance if you become sick or injured, or your circumstances change. “For example, a drop from Gold to Silver hospital cover could mean you’re no longer covered for pregnancy.” Mr Martin urged policy holders to review their policy at least once a year. “Checking a policy annually is crucial to making sure coverage is adequate and could save you money. “You don't have to stick with any particular insurer – if you want to save on your health insurance costs, you should shop around for the best deal.” Women (36%) are more likely than men (29%) to say they have insufficient coverage.