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XHP enable members of the scheme, to reduce or eliminate out of pocket expenses by accumulating unused extras health investments

Here is what some experts have to say about Extras Health Insurance offered right now by health insurance companies
Choice Magazine Health Expert says
A lot of people waste good money on health insurance they do not use or understand. Extras health cover insurance is poorly understood and often what one pays to get the cover is more that what is paid back in rebates.

According to APRA, the body that regulates Private health insurance companies in Australia 
a. Most extras policies only pay a percentage of capped amount towards the cost of these services. 
b. Average extras cost per person is $410. 
*APRA quarterly health insurance statistic, March 2021.

The questions then becomes are you getting value for the investment you are making towards your own extras health needs. 

Do nothing if you happy with your extras cover, but be prepared to pay GAP when your needs increase over time.
or
Benefit from accumulating your unused funds with XHP that you control every year and be way ahead over time. 
This is a comparison of two families who have extras cover, and use their cover every year for extras health needs. 

Bennet family have private health extras cover and have various limits, caps and other limitations that apply to their cover. Although they do not have GAP to pay for some services with preferred providers. They end up having a GAP to pay. According to their cover they get 70% rebate up to the annual limit of the services they use. 

They do not have the need for all services as they are all healthy and have needs coming up. They have been told their children may need dental braces. 

Jensen Family are no different, they have their cover with XHP and have similar expenses to the Bennet family. Their children are older than the bennet children. With XHP the Jensen pay an annual fee of $199 and Scheme fees. 

As GAP calculations are so varied between health funds due to 
a. Type of cover  extras standalone or combined (Standalone has lower cover and limits)
b. Where you live. (every state has a different fee)
c. Who your health provider is? ( health fund preferred or the one you want to see)
d. Service limits, fund rules and multiple combinations of them.
e. Time of the financial year or calendar year of the service.

To simplify the comparison the following assumptions have been used. 
a. Average GAP as obtained from APRA quarterly statistical data June 2021. is 47.92%
b. The Jensen's pay all XHP fee from their accumulated balance
c. Period of calculation of data is 10 years.
d. Both families are paying the same amount for their extras cover. 
Jansen family have their extras cover with XHP and on an average spend $1000 each year on extras health needs
Bennet family have private health extras cover and spend $1000 each year on extras health needs. They have a GAP.
Annual Contributions over 10 years
$18,240
$18,240
Total Spend over 10 years
$10,000
$10,000
GAP payments on their extras health needs
$0.00
$4,792
Balance at the End of 10 years after extras health spend
$4,275.01
$0.00
Total Cost over 10 years 
$4,163.99
$23,032
Cost per day (gross includes gap and fees) 
$1.14
$6.31
Summary of Comparison

XHP costs are significantly lower compared to extras health insurance costs where a "GAP is involved. XHP offers a saving of $5.17 per day

XHP costs are lower compared to extras health insurance costs even when a GAP is not payable. XHP offers a saving of $1.11 per day.

Jensen family has $4,275.01, left for other extras health needs or having a savings towards the braces their children will need.

If the Bennet family did not use their extras cover, they would lose $18,240 and have lost all the money paid out over time. 

However,  the Jensen family would have $12163 left for their needs after all fees and charges. Total cost per day $1.72

So what will you choose? 
To accumulate your money or throw your money away.

Please consider your personal circumstances when making your decision. Only general information that is publicly available is discussed here. Your personal circumstances may differ. Please consider that the information is right for you and your needs. Please read the product disclosure statement of of Xtras Health Savings Scheme to inform yourself of the product. 

There is a 14 day cooling off period from the time of signup if the scheme is not right for you or your needs.  
© Copyright 2021 - XHP - All Rights Reserved
Xtras Health Savings Scheme is not a health insurance policy. It is a managed investment scheme that offers a dedicated health savings account for funds that you may need for your extras cover.
Funds in the scheme are not eligible for any tax concessions. It only applies to hospital cover. Funds in the scheme can supplement your private health insurance.
You must consider your personal circumstances for your extra’s health needs. There is a risk that there may be insufficient funds in your account to meet the cost of your extra’s health needs

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