Need to know
- You can compare and switch health insurance policies at any time to make sure you're getting the best cover and value
- We found 89 Gold policies that cost you $500 (single) or $1000 (couple/family) more a year than similar policies
- Medibank, Bupa and Qantas (NIB) are among the health funds selling these overpriced Gold policies
Are you on the best value health insurance policy? You can compare health insurance and switch at any time, and it's important to do this regularly to make sure you have the most appropriate cover and best value.
We've found 89 Gold hospital insurance policies that cost at least $500 per year more for a single person, or $1000 more for a couple or family, than the cheapest Gold policy in the same state.
All Gold products include cover for the same treatment categories –- meaning that there's little difference in the value they provide, so it's pretty easy to tell if you're paying too much. If you have Gold hospital insurance and are paying more than the cheapest policy in your state costs, it's time to compare your options.
Beware of these expensive policies
There are many Gold policies that cost over $500 per year more than the cheapest Gold policy in that state – for essentially the same product. We've listed below all the policies with a $750 excess that are at least $500 a year dearer than the cheapest policy available in each state.
AHM Advanced Hospital Gold is the most expensive non-restricted policy in most states of Australia. Ditching this policy and buying the cheapest Gold instead could save a single person between $1000 and $2130 a year, depending on what state you live in.
AHM Advanced Hospital Gold is the most expensive non-restricted policy in most states
Our complete list of expensive Gold policies is in the table below. If you have one of these policies, it makes sense to dump it for a cheaper one. Compare health insurance options to find the right policy for you.
How we compare Gold health insurance
We looked at the cheapest non-restricted Gold policies for a single person in each state and territory with any excess, and selected all Gold policies with a $750 excess that were $500 a year more expensive (before the private health insurance rebate is applied).
We excluded any Gold policies that were only available with an extras policy from the same fund.
Should I buy Gold health insurance?
Gold health insurance is the highest level of private hospital cover available in Australia. However, given the rising cost of Gold tier health insurance, most people would actually get better value from a Silver Plus policy than with a Gold.
Gold policies provide cover for all of the following treatment categories, but if you only need cover for one or two of these, you're probably better off looking for a Silver Plus that includes that option:
- IVF, pregnancy and birth
- Cataract eye surgery
- Hip or knee replacement
- Pain management with a device for chronic health issues
- Insulin pumps
- Gastric banding surgery
- Private treatment for psychiatry or rehabilitation.
In Australia, the four different tiers for hospital insurance are:
- Gold – full or top health insurance cover in a private hospital
- Silver – medium cover
- Bronze – low cover
- Basic – very little cover, if any.
Lower tier policies that include services usually covered by a higher tier are called Plus policies. If you need cover for a service usually provided by Gold, it will also be covered in some Silver Plus policies.
What if I already have a cheap Gold policy?
If you're already paying for a Gold policy that's cheaper than the premiums we listed as cheapest, it could be worth sticking with your current insurer.
The above analysis is only using policies that are open to new members. When health funds open a new policy for sale, they don't immediately get rid of the old ones. These are referred to as "closed policies" and they can be around for years, sometimes providing good value to those existing members, but are closed to new members.
It's become increasingly common for health funds to open new policies instead of raising the price of old policies to evade the watchful eyes of the regulator. We call this phoenixing – it's an incredibly sneaky practice that increases confusion while limiting choice and transparency, and we're hoping the government will crack down on it soon.
We're on your side
For more than 60 years, we've been making a difference for Australian consumers. In that time, we've never taken ads or sponsorship.
Instead we're funded by members who value expert reviews and independent product testing.
With no self-interest behind our advice, you don't just buy smarter, you get the answers that you need.
You know without hesitation what's safe for you and your family. And our recent sunscreens test showed just how important it is to keep business claims in check.
So you'll never be alone when something goes wrong or a business treats you unfairly.
Learn more about CHOICE membership today
Stock images: Getty, unless otherwise stated.
