Australians have weeks left to use their health insurance benefits before they expire for the year. Most health insurers will reset extras benefit limits on January 1 and people could be leaving thousands of dollars on the table if they don’t take advantage now.
There are around 15 million Australians with an extras or combined hospital and extras policy. However, new research from Money.com.au found two in five Aussies didn’t know if they had any unused extras left on their policy.
Money.com.au general manager of health insurance Chris Whitelaw told Yahoo Finance the majority of insurers reset benefits at the start of the new year. That includes major funds like Bupa, Medibank, HCF, HBF and NIB.
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“There are a few which are on a membership year, but the majority are going to be in January,” Whitelaw said.
“Look at it now and look at what you have used in the past, not just what sounds cool, but what you actually used.”
All extras policies have annual limits, which are the maximum amount you can claim on a specific service or treatment each year. This is given on a “use it or lose it” basis, so once the limit resets, any unused amount is lost.
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Some insurers reset their annual limits at the end of the financial year on July 1, while a small number of funds offer policies where limits reset on the policy anniversary date.
Around a third of Aussies (31 per cent) surveyed said they had used some extras but still had benefits left, the survey of 1,000 people found, while 15 per cent had used none or very little of their limits.
Only 14 per cent of Aussies had used their full entitlements this year.
Whitelaw said Aussies underestimated how much value they lost by not keeping track of their extras annual limits.
“Australians are effectively walking away from thousands of dollars in value every year. Depending on your policy, extras limits can range from $200 to $1,800 for services like general dental,” he said.
“Many people don’t realise those benefits vanish overnight on December 31. It’s a classic ‘use it or lose it’ scenario.”
Whitelaw encouraged Aussies to use the next few weeks to book a dental clean, renew their glasses or get one final physio appointment.
“Appointment books fill up quickly in December, so securing those final bookings now can make a big difference,” he said.