So Lets Compare
So lets compare the pair for Betty who is 32, and has had a cover for 10 years. Let’s compare “apples with apples” for the comparison the following assumption have been made
- Contributions to Private health insurance Extras cover and XHP is exactly the same – $5/day paid on a monthly basis. Annual total paid being $1825
- No interest earnt has been added to the calculation for XHP
- Betty is healthy and has not been to a health provider in the last 10 years
- Funds in both Private Health Insurance Extras and XHP are used for health needs only
- Year End balance is net of fees and charges. XHP Account balance is net of XHP Scheme Fee(1%), Management fee of (.5%) of monthly account balance and the platform fee is $199/year
- Annual premium increases have been excluded with Private Health Insurance Extras.
Like a lot of Australians, who do not use their extras health cover even though they keep paying for it. Betty too, does not use her extras cover for 10 years. At the end of the tenth year this is how XHP compares with Private health extras cover
Xtras Health Plan Savings Scheme | Private Health Insurance Extras Cover | |||
Year | Net Balance | Cumulative Position | Net Balance | Cumulative Position |
1 | $1,550.05 | $1,550.02 | 0 | -1825 |
2 | $1,448.00 | $2,997.93 | 0 | -3650 |
3 | $1,351.91 | $4,349.71 | 0 | -5475 |
4 | $1,261.43 | $5,610.96 | 0 | -7300 |
5 | $1,176.23 | $6,786.97 | 0 | -9125 |
6 | $1,096.01 | $7,882.71 | 0 | -10950 |
7 | $1,020.47 | $8,902.87 | 0 | -12775 |
8 | $949.34 | $9,851.86 | 0 | -14600 |
9 | $882.36 | $10,733.84 | 0 | -16425 |
10 | $819.29 | $11,552.72 | 0 | -18250 |
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So what if Betty spends $1000 on her extras every year and goes to preferred providers and does not pay a gap for the services she uses.
Xtras Health Plan Savings Scheme | Private Health Insurance Extras Cover | |||
Year | Net Balance | Cumulative Position | Net Balance | Cumulative Position |
1 | $603.72 | $603.72 | 0 | -825 |
2 | $600.61 | $1,204.32 | 0 | -1650 |
3 | $597.60 | $1,801.93 | 0 | -2475 |
4 | $594.62 | $2,396.54 | 0 | -3300 |
5 | $591.64 | $2,988.18 | 0 | -4125 |
6 | $588.68 | $3,576.87 | 0 | -4950 |
7 | $585.74 | $4,162.61 | 0 | -5775 |
8 | $582.81 | $4,745.42 | 0 | -6600 |
9 | $579.90 | $5,325.32 | 0 | -7425 |
10 | $577.00 | $5,902.32 | 0 | -8250 |
** Calculation is based on the assumption that there is no GAP with Extras Cover offered by private health insurance extras cover
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Betty is better off with XHP as she is miles ahead financially to take care of extras health needs.
However you must consider that some health funds extras cover may provide unlimited minor procedures cover in which case you may be better off with private health insurance extras cover.
Information provided is General Information only. Your personal circumstances have not been considered and does not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.
Proudly Australian for Australians
Australian Owned and Operated
Suite2, 36 Macaree Street,
Berserker, Rockhampton,
Queensland 4701
Phone (07) 4807 6424
Email [email protected]
Xtras Health Plan Savings Scheme (Xtras) is not an insurance policy and you should consider your personal circumstances before deciding whether to open an account. Funds deposited to an account will not be eligible for a private health insurance rebate. Xtras may be considered as a replacement for or to act supplementary to private health insurance depending on your personal circumstances. Xtras Health Plan Ltd does not warrant that Xtras is suitable for your personal circumstances and you should consider your health and financial needs before deciding whether to open an account. There is a risk that you may have insufficient funds in your account to meet the costs of health treatment depending on the treatment required and amount deposited to your account.
