There are a number of changes to health insurance coming in 2022 that could impact your premium.

Here’s what you need to know to make the most of your cover.

Extras benefits reset

A number of health funds reset their extras health insurance benefits on 1 January.

This means the amount you can claim on extras treatments has reset to the maximum amount available on your policy.

Take advantage of the reset to book in any treatments that you have been putting off, including optometrist or dentist visits.

Check your policy for your extras reset date – some policies reset on 1 July or on the anniversary of when you took out your policy.

Premium increases

Private health insurance premiums will increase by about 2.7% on 1 April, the lowest increase in 21 years.

Some insurers are expected to delay the increase until later in the year.

Private Healthcare Australia CEO Dr Rachel David said the rising cost of healthcare put pressure on premiums.

“In an ideal world health funds would not increase premiums by a single dollar,” Dr David said.

“This year, funds have proposed the lowest possible rise necessary to ensure they remain financially viable and can continue to provide members with access to quality and timely healthcare, which is critical as we move out of the pandemic.

You can avoid the price increase by paying for your health insurance upfront before 1 April. Talk to your provider about getting a better deal or shop around for a cheaper policy that meets your needs.

Government reform could bring cheaper premiums

The Australian Government is investing $22 million over four years to reduce the cost of medical devices used in the private health sector and streamline access to new medical devices, which will improve the affordability and value of private health insurance.

Over time the pricing of medical devices, used for operations such as knee and hip replacements, for private hospitals will better align with the price paid in the public hospital system.

Dr David said the reform would help to reduce premium prices.

“The Morrison Government announced budget measures to fast-track changes to medical device pricing, one of the largest drivers of premium increases,” Dr David said.

“Currently, the price of medical devices in Australia is around 30% higher than in countries such as New Zealand, France and the UK.

“Taking urgent action to reform the way medical devices are priced is the key to delivering savings to Australian consumers.

The reforms are expected to be implemented by 2025.

The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.