HBF to increase health insurance premiums on 1 April 2022 – CHOICE

Need to know

HBF will increase its health insurance premiums on 1 April 2022 by 3.62% 
If you prepay by 31 March, you can lock in your current premium for up to 18 months
HBF is Australia’s fifth-largest health fund behind Medibank, Bupa, HCF and NIB

HBF will increase its health insurance premiums on 1 April 2022 by an average of 3.62%.

This compares with an average premium increase of 2.7% and is the highest increase of the five major health funds. The other four funds have also delayed their premium increases till later this year:

NIB – 2.66% increase from 1 September 2022
HCF – 2.72% from 1 November 2022
Medibank – 3.10% from 1 October 2022
Bupa – 3.18% from 1 October 2022.

How to save on your HBF health insurance premium

You can review your private health insurance at any time to see if you’re getting the best deal (it’s good practice to do it at least once a year). With thousands of health insurance policies on the market it can be hard to make sense of your options, so our insurance experts developed a tool that lets you compare health insurance so you can find cover that works for you, and potentially save yourself hundreds.

If you decide your current policy is good value for money and suits your needs, prepay your premium by 31 March. This is an excellent way to save money as it ‘locks in’ your current premium and means you’ll avoid the 1 April price increase for up to 18 months.

HBF discounts

You can save money on your health insurance by taking advantage of available discounts that centre around how and when you pay, such as:

3.85% discount when you prepay your premium (maximum prepayment period is 18 months)
4% discount when you pay by direct debit
7.85% discount when you prepay your premium using direct debit.

Who is HBF?

HBF was founded more than 80 years ago in Perth and still has about 80% of its 1.1 million members located in Western Australia. With a market share of about 8%, HBF is Australia’s fifth-largest health insurer and, behind HCF, Australia’s second-largest member-based nonprofit health fund.

How does HBF rate?

Gap cover rating

How well does HBF protect its members from out-of-pocket costs?

WA and the ACT  – Above average (the second-highest rating).
Everywhere else – Average.

Health funds have agreements with particular doctors and hospitals to cover:

all of the gap, which are called ‘no-gap agreements’, or part of the gap, which are called ‘known-gap agreements’ (resulting in lower out-of-pocket costs, usually less than $500).

The CHOICE gap rating takes into account the percentage of services where members either paid no gap or a known gap, compared to the state average.

Complaints rating

HBF has a Medium rating for complaints.

The complaints rating is based on complaints lodged with the Private Health Insurance Ombudsman (1 Oct to 31 Dec 2021). See our round-up of the most complained about health funds.

When we score policies we give each fund a complaints rating which is based on the number of complaints and serious disputes the Private Health Insurance Ombudsman deals with. 

We also take into account the size of the fund, so big funds don’t get automatically penalised for having more complaints. The ratings are Low, Medium and High. A low rating is better than a high rating – it means the fund has fewer complaints and fewer serious disputes for its size.

We update these ratings each quarter.

How did HBF treat its members during COVID-19?

In 2020 nearly all private health funds in Australia delayed their premium increases until 1 October. HBF was the only major health fund to totally cancel the premium increase that year.

While all five major health funds refunded COVID-19 profits to their members, HBF was the first fund to announce these refunds and says it’s committed to continue to refund any extra profits made during the pandemic.

Five steps to better, cheaper health insurance

Want to change health insurance policies but not sure where to start? Our experts have put together a handy five-step action plan to help you through the process of reviewing, comparing and switching your health insurance policy. 

Just a few minutes could potentially save you hundreds of dollars a year: one of our editors saved herself over $1800 annually just by reviewing and switching cover for her young family. 

Follow these five easy steps below.

Health insurance action plan for HBF members

1. Check your premium increase

Look out for a letter or email from HBF. The HBF average increase is 3.62% but yours might be higher or lower.

2. Do you really need health insurance?

Is it worth it? Some people have hospital cover for peace of mind, some people will save on tax. With extras, make sure you’re getting back more than you pay for cover.

3. Get the right level of cover

Is your family covered for everything you need?

4. Shop around

Find a better deal by using our easy health insurance comparison tool.

5. Prepay by 31 March

Contact HBF about prepaying before the annual premium increase.