Skip to content

Excess changes: How to reduce the cost of your premium

3 minute read
A couple on a street looking at a phone

There are a number of different ways you can reduce the cost of your health insurance premium, from reviewing your cover to ensure you’re not paying for things you don’t need to taking advantage of nib’s direct debit discount or choosing a higher excess option in return for lower premiums.

Thanks to the Government-initiated reforms, the maximum excess limit has now increased giving you more choice around the cost of your premium. It’s just one of the new reforms introduced, which we believe represent a significant step toward making health insurance easier to understand and more affordable.

As of 1 April 2019, nib members will be given the option to increase their excess limit from $500 to $750 for singles, and $1,000 to $1,500 for couples or families. So, if you’re with nib, you can now opt for a higher level of excess in return for a lower premium. If you’re with another health fund, this might not apply as it’s an optional part of the upcoming reforms.

To help you navigate all things excess, we’ve outlined some of the most frequently asked questions.

What is a health insurance excess?

Just like with your car or home insurance, excess (which is sometimes referred to as a front end deductible) is an amount of money you agree to pay for a hospital stay before health insurance benefits are payable. Generally speaking, choosing a higher excess means you’ll pay less for your health cover.

How does excess work?

If you select a $750 excess and you make a hospital claim for $2,500, you’ll pay the first $750 and your insurer will pay the remaining $1,750. The excess is paid directly to the hospital and is only payable if you, or someone on your policy, go to hospital – it doesn’t apply to Extras cover.

A woman sitting with a book

How can I check my current excess amount?

Contact us or login for more information about the excess on your policy.

How do I select an excess option?

Your excess limit is selected when you purchase a health insurance policy. If you’re with nib and you’d like to confirm your excess amount, you can do so by logging into Online Services. You can also change your excess by contacting our member service team on 13 16 42.

We’re currently working on building a tool in Online Services so you can login and change your excess limit yourself. We’ll let you know when it’s ready.

If my child needs to go to hospital, what excess will I pay?

If you’re on a selected family cover, you won’t need to pay an excess if one of your kids (up to 21 years of age) has to go to hospital. Please contact us to find out whether this applies to your family.

To find out more about the Government-initiated private health insurance reforms, visit our dedicated page.

For other helpful tips on reducing the cost of your cover, check out our guide to saving money on your health insurance premium.

See all articles

Articles you might also like

Everything you need to know about reviewing your cover

Does your health insurance match your needs and lifestyle?

Why should I keep private health insurance?

You might be asking yourself, “Do I need health insurance?”

Private health insurance: What is community rating?

In Australia, everyone has the right to buy health insurance

A guide to saving money on your health insurance cover

A few small changes can make a big difference

Everything you need to know about reviewing your cover

Does your health insurance match your needs and lifestyle?

Why should I keep private health insurance?

You might be asking yourself, “Do I need health insurance?”

Private health insurance: What is community rating?

In Australia, everyone has the right to buy health insurance

A guide to saving money on your health insurance cover

A few small changes can make a big difference