PHI

Every year there is an increase in the premiums paid to health funds,and is a subject of debate in many households if they should continue with the

health cover. Average premium increases in the last 8 years is 5.37% making insurance cover unaffordable for some households. The increases are not in line with CPI or wage growth.

The Conversation website , has a chart that tracks the private health insurance premium rises compared to wages and CPI. However bear in mind that it is not specific for extras cover cost increases.

Adding to rising cost of cover is the GAP and decreasing level of benefits paid, which results in a financial burden for people resulting in most people putting off the much needed health care and tolerating the discomfort.

1. http://health.gov.au/internet/main/publishing.nsf/content/privatehealth-average-premium-round
2. https://theconversation.com/private-health-insurance-premium-increases-explained-in-14-charts-92825

XHP

Increasing contributions for your extras health needs is entirely your call with XHP as long as  the minimum contribution amount of $5/day is met. The fact to keep in mind is that cost of health services keep rising every year. Our recommendation would be to increase your contribution by the CPI, to be on top of the inflation and costs over time.

Did you know Contribution Fees charged by XHP is capped for the life of your membership. With the contribution fees being capped and your account balance increasing over time, contribution fees in relation to account balance would be decreasing as an overall cost.