In Choice’s annual review of health insurance policies, undertaken to find the best value cover on the market, each of the major health funds and many of the smaller providers were assessed. When choosing Health Insurance, consumer group Choice advises to:

1. Avoid paying extra

Decide whether you need extras cover. Compare what you pay to what you get back. It may be better to open your own high-interest ‘extras savings account’ to put money aside for essentials like dentistry.

2. Lighten the load
If you have turned 31 in the last financial year, consider hospital cover. Without it you may have to pay a loading on your premium, which grows by 2% per year.

3. Check hospital agreement
Before buying health insurance, check there is an agreement in place that will allow you to reduce out-of-pocket hospital costs to avoid expensive gap payments.

4. Eye on Ambulance

Ambulance is provided automatically in Qld and Tasmania, and some states have pensioner concessions. Otherwise, you can access your ambulance cover though health insurance or pay in the event of an accident. However, check the level of cover as some funds only offer emergency ambulance. They may not include air ambulance or transfer between hospitals (for example, from public to private).

5. Check comparison sites

Many online health insurance comparison sites have financial relationships with the products they sell either through advertising or pay per acquisition arrangements. However you can compare policies using the government’s free private health online comparison service at www.privatehealth.gov.au