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25 Ways To Fit Private Health Cover into your Home Budget

25 Ways To Fit Private Health Cover into your Home Budget Main

How your home budget can accommodate the cost of private health cover

This statistic isn’t surprising.

According to a survey carried out by Compare the Market 1 in 3 Aussies with private health cover struggle to afford their premiums.

With the cost of private health cover set to rise by an average of 5.6% on 1 April, now is definitely the best time to revise your home budget and see what things you could perhaps sacrifice or switch to be able to comfortably afford the cover. I did it and I’m glad I did!

It’s a myth that you have to be rich to afford private health cover, you just have to be smart with your household budget and perhaps sacrifice some of the everyday non-essential items. Most importantly, I think it’s really important to see your health as a core part of your budget, a priority expense like electricity.

So how do everyday Australians afford private health cover? Well, I actually asked some people how they manage to afford it and this is how they do it.

How they save on their policy

  1. Remove your extras cover and save this amount in a savings account instead to cover the cost of things like dental and optical. This will reduce the premium.
  2. If you have children aged 2-17 years old, consider reducing or removing your dental cover (use the suggestion in point 1) and use the Medicare dental allowance for kids where they get $1000 over 2 years every 2 years. To find out if you’re eligible, click HERE.
  3. If you still want extras, consider splitting them. You don’t need to have hospital and extras from the same insurer.
  4. Many covers allow you to select only extras you will use in order to save you money.
  5. If you’re finished having babies, make sure you’ve taken measures first to avoid any unexpected pregnancies and then remove obstetrics from your cover.
  6. Don’t be afraid to move to more affordable health insurance. Revise your private health cover if you haven’t done so yet and try to do this every 2 years, you’ll normally come out getting a better deal. Click HERE to take the next step in finding the best private health cover for you.
  7. If you are a young and healthy family, consider removing things like hip/knee replacement, heart surgery etc. from your policy.
  8. Check if your employer has a corporate arrangement with a health fund, you can usually get a healthy deduction on your health cover.
  9. Try increasing your excess in order to make your premium more affordable.
  10. Pay your premium in full before April to get the previous year’s rates.

How they save on living expenses to pay for private health cover

  1. Cut back on things like takeaway and eating out
  2. Cancel Foxtel and Netflix accounts
  3. Make fewer donations to charity
  4. Cut down on takeaway coffee
  5. Revise the gift budget. Do you really need to spend that much at Christmas time?
  6. Consider working on public holidays for extra pay
  7. BYO lunch to work instead of always buying it
  8. Cut down the grocery bill.
  9. Drink less alcohol
  10. Revise electricity and gas bills and put the savings back into health insurance.
  11. Reduce your energy use
  12. Try carpooling to work and split fuel and parking costs
  13. Revise your mobile phone and internet plan and put these savings back into health insurance.
  14. Opt for cheaper family holidays
  15. Revise your home & contents insurance and put these savings back into health insurance.

OK, so you’re thinking “I’m going to miss my morning coffee, my weekly takeaway, my wine…I CAN’T GIVE THEM UP….ahhh!” I don’t blame you, they’re some of my favourite things too.

But don’t fret, consider THESE switching options instead of sacrificing the things you love. It IS doable!


This post was a collaboration between Compare The Market and The Multitasking Woman as per my Disclosure Policy

Eva Lewis (The Multitasking Woman)
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  1. March 21, 2016 / 8:55 pm

    Great tips. It can be so hard to work out if it is worth having health cover or not.

  2. March 21, 2016 / 10:18 pm

    It really is a battle of the budget. We are very fortunate that my husbands work pays for ours because it can be quite costly.

  3. March 24, 2016 / 2:36 pm

    Helpful tips. Thanks!

  4. March 27, 2016 / 7:44 pm

    I am with Kellie – I always ask myself if its worth it! I have been saving some money from bringing food to work and drinking less too! Great tips! x

  5. March 27, 2016 / 7:46 pm

    Great tips!

    I am with Kellie too – I always ask myself if its worth it! I have been saving some money from bringing food to work and drinking less too! x

  6. March 29, 2016 / 7:44 pm

    Balancing the budget is a ongoing job. I will always make room for health insurance though! Its too important to give up!

  7. March 29, 2016 / 10:00 pm

    Some great tips here. Love the ones specific to health insurance – I am going to use them when I look into getting my insurance. Thanks!

  8. Lynda
    April 1, 2016 / 3:44 pm

    I can’t cut any of those things out of my budget because I don’t already have them in my budget – we are a family of 4 and live off my wage so we really have no choice, we simply cannot afford private medical insurance.

    Fortunately we have not had to wait terribly long for any hospital operations, but I know that some public hospitals can have long waiting lists.

    I read recently (not sure if it is true or not) that the government were looking at changing the tax returns so you would no longer be able to get a rebate on PMI – this would cause a few more people to cancel their policies – currently I pay about $800 a year when I do my tax return for my medicare levy, but this is still cheaper than PMI.

  9. April 12, 2016 / 8:50 am

    I just cut my gym membership to pay for my extras cover… I wasn’t finding the time to get to the gym (plus I’d prefer taking a walk outdoors anyway) and since I’ve been using my extras cover for things like remedial massage and acupuncture I feel so so much better! Well worth the cut for me.

  10. April 12, 2016 / 10:07 am

    It is so hard for many to be able to afford health insurance. Great tips!