You would have heard the term excess many times, but do you know how it works with your health insurance? It can be confusing as to what your health insurance policy covers and does not cover. Before you are faced with a medical Event it’s important to know what you are covered for. Let’s take a closer look and see if you have the right amount set up for you.
What is excess?
The Health insurance excess is paid (by you) if you make a claim with your private health insurance provider for example nib or Southern Cross and this will be payable by you as a part payment of the service you receive. You can agree the amount when you take out your policy. Deciding the amount you want to pay when you set up your health insurance policy allows you to choose a lower premium if you select a higher excess for your private health insurance policy.
What is the purpose of my excess?
Agreeing to pay a specific amount if you ever needed to go to a private hospital for some reason is in place so that you can pay a lower monthly premium for your health insurance policy. Different policy providers offer different excess amount options for you to choose from. The more money you agree to contribute then the lower your policy payments will be. The choice if yours, it is important to set a realistic excess amount that you know you would be able to pay if the time comes.
You can also have a part payment such as you pay 20% of a claim on a fixed dollar amount like $250.
How often will I have to pay this?
You only pay if you need to claim on your health insurance. As an adviser we will be with you every step of the way if you ever need to claim. More importantly we can help you decide when you take out a policy what excess is best for you. For some insurance policies the excess applies only once per person each calendar year. What this means is that there is a cap on your excess payment if you are unfortunate enough to need to go to the hospital several times during the year. On other policies however if you do have more than one trip to the hospital you may have to pay two excesses during that year.
How does my excess work?
Let’s say you agreed to $250 and your hospital bill was $5,000, you’d pay an excess of $250, and your insurance company is required to pay $4,750. The higher the excess the higher amount you would have to pay at claim time.
If you’re not sure about how much insurance cover you need or would like to see how much you’d have to pay for health insurance, feel free to contact us and talk to an adviser about your excess today.