Do I Really Need Extras On My Health Cover?

Do I really need extras on my health cover

Health insurance in Australia is one of those things that’s easy to put on the back burner. You know you need it, and you know it’s a good idea to have extras in health cover… just in case. But here’s the thing. When you take a closer look, do you really need all those extra services covered, or is it just another way to squeeze extra dollars out of your pocket? I’m in the same boat, trying to figure out if extras cover is worth it or if I’m just falling into the “just in case” trap and I’m still trying to figure out as years go by. If you’re in the same boat, let’s dive into this together and figure out whether it makes sense for us.

What Are ‘Extras’ Actually?

Okay, so what do we mean when we talk about “extras”? Extras are those services that aren’t included in basic hospital cover but are covered by some private health insurance policies like:

  • Dental check-ups and treatments

Covers routine dental visits like check-ups, cleanings, and treatments such as fillings or root canals. Helps reduce the cost of regular dental care.

  • Optical (glasses, eye exams)

Includes eye exams and prescription glasses or contact lenses, making vision care more affordable.

  • Physiotherapy, chiropractic, and other allied health services

Covers treatments like physiotherapy for injuries or pain, chiropractic care for spinal issues, and other related therapies to improve physical health.

  • Podiatry, massage therapy, and even dietetics

Includes foot care (podiatry), muscle relaxation and pain relief (massage therapy), and nutrition advice (dietetics) for managing conditions like diabetes or obesity.

These extras help with everyday health services that aren’t covered by Medicare, making them more affordable when you need them.

Essentially, extras are all the health services that you’ll need to maintain your everyday well-being but that aren’t covered by Medicare or standard hospital cover. They’re there to help with those things that pop up occasionally but aren’t necessarily urgent enough to land you in the hospital.

But here’s the kicker, you can get a policy with or without extras. And it’s easy to overlook them, especially if you’re already paying for the basics. The question becomes: are these extras really worth adding to your plan, or is it just another premium to pay?

So How Much Will I Actually be Paying?

Let’s talk numbers. It’s easy to focus on the ‘small’ monthly premiums for extras. However, it’s important to consider how much they add up over time. You’re probably looking at an extra $20–$50 per month, depending on the level of cover. That’s anywhere from $240–$600 a year — on top of your hospital cover.

So, is that money well spent? To help answer that, we need to figure out what services you’d actually use. For example, do you really need to see an optometrist every year? Do you need regular chiropractic care? Or maybe you only go to the dentist once every few years? If you’re not using these services, that monthly premium is just adding up with no return.

On the flip side, if you have ongoing health needs, that annual premium might save you in the long run. But again, the question is: how much will you actually use these services?

What the Tax System Actually Cares About

Here’s where things get tricky. You might already know about the Medicare Levy Surcharge — it’s the tax high-income earners face if they don’t have private health cover. So, if you earn a decent income, you pay for Medicare (through the levy) but also face this surcharge if you don’t have private health insurance.

What does that mean for extras cover? If you’re already paying the levy and don’t have hospital cover, adding extras can help reduce the surcharge by ticking the box for having private health insurance. It might be worth adding extras if you’re already paying for hospital cover, especially since it can offset some of the out-of-pocket costs for everyday health services.

So, while the government might not care whether you have extras in health cover, they definitely care about your overall health cover. It’s something to keep in mind when looking at the total cost of your health insurance.

When Extras Might Be Worth It

Now that we’ve covered the tax angle, let’s talk about when extras cover is worth it.” There are a few situations where extras can save you money and give you peace of mind:

  • You have kids: Kids tend to need dental check-ups regularly, and if they’re involved in sports, they might need physio or chiropractic treatments too. Extras can save you a lot when it comes to family health costs.
  • You’re dealing with ongoing health issues: If you’ve got a bad back, frequent injuries, or other conditions that require regular physio or massage, extras can offset a lot of these ongoing costs.
  • You go to the dentist regularly: Let’s face it — dental bills can get out of hand. If you’re someone who visits the dentist at least once or twice a year, the cost of adding extras can be well worth it.
  • You need glasses: Optics can be expensive, especially if you need new glasses regularly. Having extras might help cover part of the cost.

In these cases, the value of private health extras Australia really shines. You’re not just paying for things you might never use; you’re ensuring you’re covered for the things that come up regularly.

When Extras Might Be a Waste

Extras aren’t always necessary, though. Here are a few situations when the extra cost might not be worth it:

  • You don’t use them: If you rarely visit the dentist or don’t need glasses, the cost of extras might outweigh the benefits.
  • You’re in good health: If you’re relatively young, healthy, and don’t foresee needing physio or chiropractic care, adding extras may be an unnecessary expense.
  • You’re already paying out-of-pocket for services: If you’re not regularly using services like dental care or physiotherapy, paying out-of-pocket for them when the need arises might be more cost-effective than paying for extras every month.

In these cases, you might find that the money you save by ditching extras is better spent elsewhere. Consider using it for more robust hospital cover or saving for future health needs.

Smart Alternatives

“If extras don’t seem worth it but you still want coverage for health services, consider these smart alternatives:

  1. Health Savings: If you’re not using extras but want to prepare for health expenses, set aside a portion of your budget for savings.
  2. Targeted Health Insurance: Some plans allow you to tailor your coverage to only include what you need. Consider paying for basic hospital cover. Add specific extras, like dental or optical, if those are the services you use.
  3. Health Discounts: Many providers offer discounts for regular services, like dental check-ups or optometry visits. This could be a more cost-effective way to manage your health expenses without the need for extras cover.

Final Thought: The Power of Reviewing What You’re Paying For

Ultimately, the decision to include extras in health cover depends on your needs and how often you use the services. It’s easy to pay ‘just in case,’ but reviewing what you’re actually getting for your money is important.

Take the time to compare plans and understand exactly what your health insurance covers — and what it doesn’t. If you’re unsure whether extras cover is worth it, step back, assess your health needs, and make an informed decision.

Don’t let the “just in case” trap lock you into paying for something that doesn’t serve you.