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Unlike Hospital Cover, Extras Cover is the form of health insurance that won’t help you avoid the Medicare Levy Surcharge, so it might not be a big priority for some people. But if you want to save money on health maintenance costs, such as dental treatments and physiotherapy, Extras Cover can be a good investment. But there’s one caveat – you’ve got to choose the right policy to make Extras Cover worthwhile.
At healthslips.com.au, we’re all about helping you get the most out of health insurance, so here are our 5 ways to make Extras Cover worthwhile.
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1. Calculate cost in vs cost out
Extras Cover is the type of health insurance where you have to use it to make it worthwhile (that rule doesn’t apply to Hospital Cover). To figure out whether your Extras Cover policy is worth having, work out how much you claimed on Extras treatments last year (check your records on your insurer’s app or website) and compare it with how much you spent on premiums. If you spent more on premiums than you got back in claims, that’s a sign you’ve got the wrong policy. You can either look for a cheaper policy (more on that below) or make a point of using your policy more regularly.
Tip:
You can’t claim back 100% of the cost of any Extras treatment – effectively, you have to spend some money to claim back some money. For example, if you’re getting massages just to use up your benefits, you’ll end up out of pocket, because you still have to pay some of the cost of those appointments yourself. So to get value from your policy, make sure you’re only booking treatments you actually need.
2. Match treatments to healthcare needs
Unfortunately you can’t mix and match the treatments you want covered and reject the ones you don’t. So the best way to get good value is to make sure enough of what you want is contained in your policy – in other words, don’t choose top-level cover unless you’ll need all those treatments.
Instead, think about your Extras healthcare priorities and make sure those align with the policy you choose. For example, if you’re in your 40s and don’t have children, orthodontics and hearing aids might not be a priority for you, so a top-level policy might not be worthwhile.
Large insurers tend to have arrangements with healthcare providers, including dentists, physios and optometrists, which means you’ll get a better discount (or even free treatment) at those providers if you’re a member. Check your insurer’s website to find a list of its preferred providers in your area.
4. Look at little-used benefits
Did you know Extras Cover can sometimes include gym memberships, diabetes management education, and courses to help you learn to swim, quit smoking or manage your weight? Check to see whether your policy includes Health Management/Healthy Lifestyle, and what it covers. Also, have a look at your insurer’s website to see what other benefits are offered to members – some provide mental health support services, for example.
5. Search for a cheaper policy
If your Extras Cover is costing you more in premiums than you’re getting back, it isn’t giving you value. Look for a new policy using the healthslips.com.au calculator, which searches every policy in Australia, to make sure you don’t miss out on a good deal for you. It’s free to use, the results are unbiased and it could save you a lot of money in mere minutes. Already got Extras Cover? Compare it to other policies to see if it’s worth changing policies. Don’t have Extras Cover yet? Hit up the calculator to find your best policy.
Tip:
There’s no rule that says you have to have Hospital and Extras Cover with the same insurer – in fact, it may work out cheaper to have policies from separate insurers. Try searching for Hospital Cover and Extras Cover separately to see whether you could get cheaper cover by using different insurers.
healthslips.com.au does not provide general or personalised advice. Your particular circumstances are likely to impact the accuracy, completeness and relevance of the information or results. Take this into account before making a decision and talk to an expert for financial advice.
Trudie McConnochie
Writer and Researcher
Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.
Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.
Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.
