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Changing your excess: How to reduce the cost of your health insurance premium

3 minute read
Older couple in the kitchen discussing their health insurance Extras

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.

At nib, we’re passionate about finding ways to make the price of your health insurance more affordable, which is why we give members the option to increase their excess limit to $750 for singles and to $1,500 for couples or families.

So, if you’re with nib, you’ll be able to opt for a higher level of excess in return for a lower premium; however, if you’re with another health fund, this might not apply.

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, an excess is an amount of money you agree to pay for a hospital stay, before health insurer 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.

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

Under some of our family covers, 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 cover.

Do you have more questions around your family’s policy? We’ve put together a family guide to health insurance.

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

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