Including a hospital excess or co-payment in your health insurance can be an effective way to reduce you premiums and generate real savings.
Hospital Excess
An excess (sometimes called a front end deductible) is an amount you agree to pay towards your hospitalisation costs before health insurance benefits are payable. In return for taking an ‘excess’ policy, your health fund will offer you lower premiums – so you save. The amount of the premium reduction will usually depend on the level of excess you take. As a general rule, the higher the excess amount, the larger the premium reduction or discount will be.
An excess on your hospital cover policy works in much the same way as the excess on car insurance. When you have a claim, you are required to pay the excess before your health insurance benefits are payable. For example, if your health insurance has an excess of $250, you may be required to pay the first $250 of your hospital costs when you are admitted to hospital. Depending on the level of cover you have chosen, your health insurance may then pay the balance of your hospital costs.
An excess could apply every time you go to hospital or it may be capped at a maximum amount that you will have to pay in a year. For example, some couples and family covers limit the excess to 2 hospital admissions per year. So any further hospital admissions in that year (a 3rd or even 4th admission) would be excess free (full cover may apply).
If you are unsure how the excess on your health insurance works you should ask your health fund or contact us.
Hospital Co-payment
A hospital co-payment is where you agree to pay a part of each hospital service you use in return for lower premiums. If your policy has a $50 co-payment, for example, you may pay $50 each day towards hospital accommodation. In this case a week in hospital would cost you $350 ($50 per day x 7 days).
The total amount of co-payment you can pay is sometimes capped at maximum amount payable per year or per hospital admission.
If you are unsure how the co-payment on your health insurance works you should ask your health fund or contact us.
Health Link can help with your Health Insurance
Health Link Consultants can help you save on your health insurance with a range of hospital excess and co-payment options. We have access to a huge selection of policies from a range of health funds to ensure we can find the most appropriate and competitive covers for your requirements.
Simply provide us with details of your health insurance needs using the online form or call us on (03) 9670 5555 or 1800 808 026. We’ll then review your situation and forward a policy recommendation to you. Best of all, Health Link’s health insurance review and personal recommendation service is available to you free of cost and without obligation.
More information about the Hospital Excess and Co-payments
For more information about Hospital Excess and Hospital Co-payment options or any other health insurance related matter, contact Health Link Consultants on 03 9670 5555 or 1800 808 026 – or submit your enquiry online.