Health insurance can be confusing, especially with so much information and advice floating around. For Australians in their 50s, 60s and beyond, some common misconceptions can lead people to pay more than they need to or stick with cover that no longer suits their needs.
We've created a series of short videos to help separate fact from fiction and make health insurance easier to understand.
Myth 1: "To be properly covered, I need Gold cover"
Many people assume Gold cover automatically means the best value or the right level of protection.
The reality: Gold, Silver, Bronze and Basic are government-defined tiers that help consumers compare what's included in different hospital policies.
Gold cover includes every hospital treatment category recognised by the government, including some services that may not be relevant to everyone. If a policy meets the minimum requirements of a tier, but also includes additional coverage, then it can be called a “Plus” policy – for example, Bronze Plus or Silver Plus. For many people over 50, a well-designed Silver Plus policy can cover the services they're more likely to need, without paying for categories they're unlikely to use.
Depending on the policy, Silver Plus cover may include treatments such as:
- Joint replacements
- Cataract surgery
- Dialysis for chronic kidney failure
- Many common hospital treatments used later in life
The important thing to remember is that with Australian Unity’s Silver Plus products, if any gold tier treatments are included on your policy, you’ll receive the same benefit as if you were on Gold.
Myth 2: "If I switch funds, I'll have to serve all my waiting periods again"
This is one of the most common reasons people avoid reviewing their health insurance.
The reality: In most cases, if you switch to the same level of cover or a lower level of cover, you won't need to re-serve waiting periods you've already completed.
Your waiting period history generally transfers with you.
Waiting periods typically only apply when:
- You're taking out health insurance for the first time
- You're upgrading to higher levels of cover
- You're adding benefits you haven't previously held
Switching funds is often much simpler than expected.
Myth 3: "With the rebate changing for 65s and over, my premium keeps going up and there's nothing I can do"
Many people approaching 65 worry that changes to the private health insurance rebate could automatically leave them paying significantly more for cover.
The reality: Proposed changes that could affect some Australians aged 65 and over have been discussed, but they have not been confirmed. Australian Unity is raising its concerns with government and advocating on behalf of members.
If any changes do go ahead, it doesn't automatically mean you're out of options. Reviewing your cover can help ensure it still suits your needs and budget. You may be able to adjust things such as:
- Your excess (the amount you pay if you go to hospital – choosing a higher excess can help lower your premium)
- Any co-payments
- What's included in your cover
- The level of cover that's right for your stage of life
If the proposed rebate changes are introduced, we'll help members understand what they mean and review their options.
Myth 4: "Switching funds means leaving my trusted dentist or physio"
Many people worry that changing health funds means changing healthcare providers.
The reality: That's not always the case.
With Australian Unity, you can continue seeing the dentist, physiotherapist, chiropractor or other fund recognised extras provider you know and trust.
This gives you the flexibility to choose the healthcare professionals that work best for you, while still claiming benefits for eligible services. That’s unlike some health funds who lock you into their preferred provider network, by significantly reducing benefits if you see a provider outside of their network.
Why it's worth reviewing your cover after 50
Life changes, and your health insurance needs often change too.
Whether you're:
- Still working full-time
- Planning for retirement
- Becoming an empty nester
- Managing new health needs
- Looking for better value from your premiums
It's worth reviewing your cover regularly to make sure it still matches your stage of life.
Many Australians over 50 are surprised to learn they may be paying for benefits they no longer need, while missing out on options that could better suit their circumstances.
