Small health funds may be big value

Some smaller health insurance providers are giving the big brands a run for their money when it comes to value for money.

Three of the biggest health funds have been named the top insurance providers when it comes to value but smaller players are also worthy of attention, a new report says.

The price and features of more than 620 health insurance products from 24 insurers were assessed by financial researcher Canstar to determine which funds offer the best value.

Bupa, HCF and Medibank took out the national awards for outstanding value, while smaller funds such as Queensland Country Health, HCI and HIF picked up state awards.

Canstar research manager Mitchell Watson said the state winners are just as competitive as the big names.

"Some of them might be brands not everyone is familiar with but brands they should consider within those regions when they're shopping around for health insurance," he said.

Value ratings are not about the cheapest insurance policies, Mr Watson said.

"You may very well get a cheap and cheerful policy but really what it comes down to is how that product's going to perform at time of claim," he said.

The report also determined the average cost of combined hospital and extras packages, which can differ by more than $550 per person, depending on where you live.

A young singles policy costs $1866 on average in Victoria, but only $1313 on average in the Northern Territory.

"That comes down to costs of health services within those states," Mr Watson explained.

"Some states will be more cost effective than others."

Canstar's research also showed that in some cases, the cost of a couples policy was slightly more expensive than buying two separate singles policies.

"There might just be a slight premium loading for insuring two people opposed to a single person," Mr Watson said.

"Depending on the policy you're looking at, it may very well be the couple may be better off choosing to purchase two single ones opposed to the joint policy."


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Source: AAP



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