With the smorgardsboard of choices that is offered by private health extras providers that range in cover level, it not only is confusing its difficult to know what is right for you.

Well there is a limit, sub limits and combined limits on the services that you need. Lost you are not on your own. There is no universal definition and its application varies from one fund to another. has an article that explains it as Annual limit is the maximum that you are entitled to, for a particular service in that year. Sub limits may apply to services within the annual limit and is sometimes deducted from the limit, combined limit aggregates various services under one heading and may have its own limit. There is no universal definition

Private Health Insurance Extras Cover (PHIe)

I was never told about it.

Inducements such as waived waiting period, movie vouchers are designed to get you in through the door, ask yourself this simple question? Were you told about what the limitation of the cover is, what is covered or what's not.

All too often people find out after the event, leading to frustration and feeling absolutely let down or worse sucked in.

The amount of benefit for a health service is either a set limit or a percentage benefit.

Set Limit has a cap of what will be paid by your insurer for the particular service.

With a percentage benefit a percentage of the cost of the service is covered and the balance is upto you to pay. Some funds allow you to aggregate funds from other services to use for a particular service.

If you do not use the benefit for the year, then you lose out on the benefit for good. An article by Choice magazine 1 titled “Less for more” does a fantastic job of explaining this.


Xtras Health Plan Savings Scheme (XHP)

no limits

Straight up, there is no limits for any service. How much you spend on a service that you need or which services you choose to use is again your call. Furthermore you may not use all the services in a given year so why lose out. We think you should accumulate your unused funds year on year as you may need the service sometime in the future. How about family members who don't use certain services but need more of other services. It is only fair that you be in control of your health and financial decisions

We are not sorry that we don't have limits, sub limits, combined limits or even tiered benefits that apply. The only limit that applies with XHP is your account balance and the 3 simple rules of health provider to be registered in Australia, service must be availed in Australia and the health business must be registered in Australia


Your account balance is your limit along with the 3 simple rule

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