Alyssa Lane
Extras insurance can be a great way to save money on health services that aren't typically covered by Medicare, such as dental, optical, and physiotherapy. However, it's not always the best option for everyone. The key to determining whether extras insurance is worth it is to calculate whether the benefits you receive exceed the premiums you pay. Extras insurance can be particularly useful for those with specific health needs or families, as it can provide peace of mind and quicker access to treatment. On the other hand, some people may find that they don't use the extras cover enough to justify the cost, especially if they are generally healthy and don't anticipate needing many additional health services. It's important to compare policies and shop around for the best deal to ensure you're getting value for money.
| Characteristics | Values |
|---|---|
| Cost | The average cost of extras cover for a single person in Victoria is about $866 a year, but prices vary depending on the level of coverage, provider, type of cover, and factors such as the Australian Government Rebate (AGR). |
| Coverage | Extras cover can include dental, optical, physiotherapy, podiatry, chiropractic, massage, counselling, non-PBS medication, and medical devices such as hearing aids or blood glucose monitors. |
| Value | The value of extras cover depends on individual circumstances. Some people find it valuable for peace of mind, while others may not use the full range of benefits and prefer to pay as they go. It's important to compare policies and calculate the value based on personal health needs and budget. |
| Alternatives | Some people may prefer to pay for healthcare services out of pocket or rely on public healthcare options. In Australia, Medicare covers some basic healthcare costs, and public hospitals provide free treatment for Australian citizens and permanent residents. |
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Cost-effectiveness
The cost-effectiveness of extras insurance depends on individual circumstances, such as health needs, budget, and location. It is important to compare policies and calculate the value of the benefits received against the premiums paid to determine if extras insurance is worth the cost.
The average cost of extras cover for a single person in Victoria, Australia, is about $865 per year, excluding the health insurance rebate. This amount is comparable to the average cost of extras insurance in other Australian states. The monthly cost of extras cover can range from $15 to $150, depending on factors such as the level of coverage, the provider, and the type of cover.
Extras insurance can help reduce out-of-pocket expenses for services that are typically not covered by Medicare or hospital insurance, such as dental, optical, physiotherapy, and allied health services. Dental is one of the main reasons people take out extras cover, as the costs of dental care can quickly add up. Extras insurance can also provide benefits for other health costs, including glasses and contact lenses, dental check-ups, braces or dentures, chiropractic care, massage, counselling, and non-PBS medication.
To determine the cost-effectiveness of extras insurance, individuals should calculate their total spending on health services over a year and compare it to the cost of premiums plus any out-of-pocket expenses. If the benefits received exceed the premiums paid, then extras insurance may be worth considering. However, it is important to note that some individuals may not utilise all the benefits offered by extras insurance, making it less cost-effective for them.
Additionally, it is worth considering that some health insurers may categorise dental treatments into 'major' and 'general', with different limits for each category. It is essential to read the product information statement thoroughly to understand what is covered and excluded.
In conclusion, the cost-effectiveness of extras insurance depend on an individual's specific health needs and budget. While extras insurance can provide valuable benefits, it is important to compare policies and calculate the value of benefits received against premiums paid to make an informed decision.
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Dental cover
When choosing a dental cover plan, it's important to consider your oral health needs, the frequency of your dental visits, and the potential cost savings. If you have ongoing dental problems or need braces, a more expensive comprehensive policy may be beneficial. Comprehensive policies tend to offer higher rebates and more extensive coverage, but they also come with higher premiums. On the other hand, budget policies may be a better value if you only need basic dental care, as they have lower premiums and can help you save money if you make multiple claims.
It's also worth noting that extras cover usually has annual and group limits, sub-limits, service limits, and more. These limits vary between policies, so it's important to choose a policy with limits that suit your needs. Some health insurers split dental into 'major' and 'general', with different limits for each category. Additionally, some health funds offer no-gap extras cover for children's dental care, which can provide significant benefits.
When deciding if extras dental insurance is worth it, consider the total amount you spend on dental care in a year and compare it to the premiums and potential savings with insurance. If you use multiple health services and make claims throughout the year, extras insurance could be a good option. However, if you only visit the dentist once or twice a year, you may save money by paying directly for your dental care instead of paying for extras insurance.
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Optical cover
Extras insurance is an additional part of your health insurance that covers costs outside of hospital that Medicare doesn't cover, such as dental, optical, and physiotherapy. About 55% of Australians have extras cover, but many don't get great value for their money.
Whether extras insurance is worth it for optical cover depends on your personal circumstances. If you have good eye health and rarely need to visit an optician, then it might not be worth it. However, if you regularly need to buy glasses, contact lenses, or other optical products, then extras insurance could help you save money.
There is a range of items and services you can claim with optical cover. The most common claims are for new frames and lenses, but contact lenses and prescription sunglasses are also popular. Some policies also cover more expensive procedures such as laser eye surgery, but these policies are usually top-tier and can be hard to find.
When choosing an extras insurance policy for optical cover, it's important to consider the waiting periods, inclusions, and clinical categories. Waiting periods vary between insurers, so pay close attention to how long you'll need to wait before you can make a claim. Check the inclusions and clinical categories to ensure that the policy covers the specific services you need.
You should also consider the annual limits and claim amounts. Many funds allow you to claim back 100% of the cost up to the annual limit, but some policies may only cover 75% or less. Check the policy's sublimits for frames, lenses, and contact lenses to understand how much you can claim for each item. No-gap policies can also help you avoid extra costs.
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Physiotherapy cover
Physiotherapy is a common inclusion in many extras insurance products, so it's worth considering if you think you'll need it. If you have a health condition that requires regular physiotherapy, private health insurance can help cover the costs, and you may be able to claim on additional benefits such as myotherapy, hydrotherapy, and exercise physiology, depending on your policy.
However, it's important to note that extras insurance policies will usually have limits on the amount you can claim for included health services per year, and there may be a sub-limit on the amount claimable for a single service within the greater annual limit. For example, if your policy has a benefit of "$400 a year for physiotherapy", there may be an item limit of $40 per visit, so if your physio charges $90 a session, you'll be $50 out of pocket for each appointment.
To get the best value for money, it's important to review the services covered in your policy and consider which services you may need in the future. If you need ongoing treatment in a particular area, such as physiotherapy, check the benefit limits to make sure you're maximising your coverage. It's also worth noting that some insurers offer a percentage benefit, such as 60% off per visit, which could be more or less suitable for you depending on the cost of your treatment.
If you're considering taking out physiotherapy cover, it's a good idea to compare a range of policies to find one that suits your needs and budget. You should also consider whether you could get better value by pairing your extras cover with hospital cover, or whether you'd be better off paying for your physiotherapy directly.
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Peace of mind
Extras insurance can provide peace of mind, but it depends on your personal situation. For example, if you have a family, the security of knowing that your child or partner can get quick access to treatment may be worth the cost. Similarly, if you have a health condition that requires regular specialist appointments, extras insurance can provide peace of mind by reducing out-of-pocket expenses.
However, if you are single and in good health, you may not find the same value in extras insurance. In this case, the peace of mind that comes with extras insurance may not outweigh the cost of the policy.
To determine if extras insurance is worth it for peace of mind, consider your health needs and budget. Calculate the costs of your typical out-of-pocket expenses for health services and compare them to the cost of the insurance policy. If the policy covers health services you frequently use, it may be worth the investment.
Additionally, consider the range of services covered by the policy. Extras insurance typically covers health costs such as dental check-ups, glasses and contact lenses, physiotherapy, and non-PBS medication. If you regularly use these services, extras insurance can provide peace of mind by reducing your overall healthcare expenses.
It is also important to note that the value of extras insurance depends on how well it suits your needs. Be sure to compare policies from different providers to find one that offers the best coverage for your specific situation.
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Frequently asked questions
Extras insurance covers out-of-hospital health services that aren't typically covered by Medicare. This includes dental, optical, physio, and more.
The average cost of extras cover for a single person in Victoria, Australia, is about $866 a year. However, Aussies could pay anywhere from around $15 to $150 per month depending on the level of coverage, provider, type of cover, and other factors.
It's worth it if you use it. Compare the total amount you spent on health services over the past year to what you would have spent with insurance. If the latter is less, then it's worth getting insurance. It's also worth considering if you might need specific treatments in the future.
Extras insurance is worth it for people who need regular dental work, monthly contact lenses, pharmacy paybacks on non-PBS meds, and regular physio sessions. It's also useful for those who want to enrol in an exercise course.
Extras insurance may not be worth it for people who are single and in good health. Some people also find that the insurance doesn't cover the full cost of their treatments, so they end up paying more out-of-pocket expenses.
