FACT
Did you know contribution fees charged by XHP is capped for the life of your membership, which means the fees will never go every year.
So let's look at, Betty to compare the pair PHI vs XHP to see who she would
be better off with. Imagine Betty had joined either of them 10 years ago, so
in the year 2008. Following assumptions have been used to compare PHI and
XHP
- Amount Paid(Premiums or Contributions) to PHI and XHP is exactly the
same - $5/day
- 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 PHI and XHP are used for health needs only
- XHP Account balance is net of XHP Contribution Fee(10%)
- Annual PHI fee increases have been accounted
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.
Formulas used for the graph:
No spend
Chart 2
So what if Betty spent $1000 per year on her health needs. Based on
information from APRA the average gap with extras health for the quarter
ending June 2018 is 46.84%, in other word, Betty has an out of
pocket expenses or GAP to pay on top for the $1000 treatment.
PHI offers various limits based on how much is paid for the cover. For this
exercise, it is assumed that PHI pays 100% of the annual limit of the
membership. To know more about your own cover, please check with your extras
insurance provider.
