What Are The Benefits of Adding a Newborn to a Private Health Insurance Policy

lockmc on 20/07/2020 - 15:18
Last edited 20/07/2020 - 15:34 by 1 other user

We've recently had a newborn and I'm trying to understand the value of adding our newborn to our private health insurance.

Currently, I have a junk policy that costs $1,200 per year. It gives me limited hospital and limited extras and is really only used for avoid the Medicare levy (and gives me a few $ back when I get massages/physio).
My wife has a separate policy that costs her around $2,200 per year, which includes pregnancy. We've recently used that inclusion for our birth/stay in a private hospital.

I've seen with our current provider than a family plan costs minimum $6,000 which would include any dependents.
Adding a newborn to her plan would result in a premium increase of 75% (so lets say that puts her premium up to almost $4,000).

Whilst I admit I don't fully understand private health insurance, I'm struggling to see the benefit of adding our newborn to the policy, especially at that cost.

Does anyone have any insight into if they have added their newborn and if they think its worth it?

For my newborn, what would he be missing out on if he wasn't on my wife's policy? My understanding is the public system is perfectly fine, but I am guessing elective surgeries would have to be put on a waiting list in the public system?

Any advice appreciated. It's a complex beast and I don't want to throw money away each year on a policy that really would rarely be used on a child.

Financial Health Insurance Insurance

Comments

  • Fergy1987 on 20/07/2020 - 15:29
    +8

    Your baby will have health insurance

    • serpserpserp on 20/07/2020 - 16:08
      +4

      It is really hard being an adult for some people isn't it?

      • Fergy1987 on 20/07/2020 - 16:15

        I know right, OP is in for some rough sleepless nights with a newborn

  • tamckinnon on 20/07/2020 - 15:32

    For my newborn, what would he be missing out on if he wasn't on my wife's policy? Basically the delta changes between Public/Private

    Some reading https://www.finder.com.au/baby-health-insurance

  • [Deactivated] on 20/07/2020 - 15:32

    Your baby's length of membership may have increased benefit limits (ie. reach the benefit limit earlier if need to claim).

  • bdl on 20/07/2020 - 15:36

    Unlike AppleCare+, does not cover "expert technical support and additional hardware coverage from hospital, including up to two incidents of accidental damage every 24 months." :(

  • theHMASfriendship on 20/07/2020 - 15:48
    +11

    Your newborn will not attract the Medicare levy surcharge if they earn too much.

  • skinner on 20/07/2020 - 15:53

    Our family (2 adults + 2 kids) is covered for basic hospital and extras for roughly half that. It's a variation of some form of "young cover" rather than a specific "family cover" plan though so it skips a bunch of things you're unlikely to need until much older (cataracts, hip replacements etc). Also missing the pregnancy cover so depends if you're likely to have more kids (or just remember to put it back on ~12 months before you go again). Try shopping around to find something suitable.

  • Mackeg02 on 20/07/2020 - 15:54

    if there are complications at or after birth they can be admitted to the private hospital with your choice of doctor, find out what it what cost to add you and your newborn to our wife's cover and drop your cover

  • Tomhaigh1 on 20/07/2020 - 15:55
    +1

    Not sure about others, HCF included our newborn in the cover for free (need to check fine-prints though)

  • [Deactivated] on 20/07/2020 - 15:58
    +1

    Your baby will have private health insurance (read: scam and waste of money) and the CEO will have a larger bonus to line their pockets.

  • Smiley82 on 20/07/2020 - 15:58

    One thing we were told was that If you don’t add your newborn within a certain time period after birth (check with each insurer) they have to serve waiting periods.

    We were similar, I had a top cover including pregnancy and partner had a junk solo policy. Once bubs arrived we went onto a family plan with a hefty hike, but that’s just the way it is. We maintained top cover so we were covered for our second child, but will now reassess our options.

    • FimpBARGAIN on 21/07/2020 - 17:52

      I forgot with our first, oops. Luckily nothing happened within any of the waiting periods.

  • serpserpserp on 20/07/2020 - 16:11
    +2

    OP why do you have two policies for husband and wife? That is a waste of money right there. Put everyone on the same policy and shift it down to a basic hospital with basic extras and enjoy the extra thousands a year.

    • lockmc on 20/07/2020 - 16:33
      +1

      As per my original post, my wife has pregnancy cover, I do not. A couples/family cover is alot more than just a junk policy + pregnancy policy.

      • serpserpserp on 20/07/2020 - 19:07
        +1

        Actually it isn't. You can put preggo cover on a family policy and you'll still come out cheaper. Been there and done this.

        • Harmony262 on 30/01/2022 - 23:54

          May I ask which family insurance/policy you mentioned in this case? I've been checking the comparison, and only found that couple/family policy charges higher than buying separately. I need to buy one with pregnancy cover, while hubby only needs private health insurance for minimising tax. Thank you.

          • serpserpserp on 31/01/2022 - 10:30

            @Harmony262: This was 7-8 years ago, so policies might have changed. But my wife and I had separate PHI and when she got pregnant we changed to family and it worked out slightly cheaper

  • arkie0 on 20/07/2020 - 16:39
    -1

    Your baby will be covered for things exploratory surgery if needed right away.

  • Scantu on 20/07/2020 - 16:40
    +2

    The benefit is they will also permanently be indoctrinated into the aspirational class and have money stolen off them for their whole life when there is a free system that they should support instead.

    • 82norm on 21/07/2020 - 16:34

      You mean burden further…..

      • Scantu on 21/07/2020 - 16:55
        +1

        Mmm liberal party talking points are like candy aren't they nom nom nom

  • Hellfire on 20/07/2020 - 16:49

    I added my children to our policy when they were born. There was no additional cost to our existing couples policy.

    Unfortunately I found it was pretty useless for hospital cover. When my infant daughter got very sick we weren't able to find a single private hospital to take her.

    • netjock on 20/07/2020 - 17:11
      +1

      Unfortunately I found it was pretty useless for hospital cover. When my infant daughter got very sick we weren't able to find a single private hospital to take her.

      Guess it is one of those junk policies that does private patient in public hospitals. Private health cover is government subsidy for private health insurance sector.

      • Hellfire on 20/07/2020 - 17:45

        Nope. Silver tier policy. She was covered but no private hospital in Sydney would treat her.

        • netjock on 20/07/2020 - 18:16

          Apologies for the assumption.

          What was their excuse?

          • Hellfire on 20/07/2020 - 19:16

            @netjock: They didn't have the expertise or facilities.

  • whooah1979 on 20/07/2020 - 19:29

    Does PHI cover paediatrician check ups?

    • Smiley82 on 20/07/2020 - 22:02

      No, you do get a rebate from Medicare though.

  • leeroys_dad on 20/07/2020 - 22:07
    +3

    are you going to reduce cover for your wife to not include pregnancy now the bub is born?
    a singles policy say is 1200 per year. a couples policy (the exact same one) is 2400. the exact same family policy is 2400 (children cost nothing unless you claim). 99% of the time this is the way it is set up
    my opinion is you are best off going a family bronze cover, utilise sign up offers and only get extras when you need it

  • Ashbargin on 21/07/2020 - 08:27

    What state are you in. In NSW ambulance is covered in hospital cover. A call out can be expensive. Heaven forbid something that requires air transport.

    • lockmc on 21/07/2020 - 11:48

      VIC- We pay for our ambulance cover which is only like $50 a year or something.

  • andrek on 21/07/2020 - 08:52

    $6k per year for a hospital only family cover is a bit too much. For example, top cover from StLukes with $300 excess (https://stlukes.com.au/Products/Superior-Gold-300.aspx) works out around $4k, plus/minus $200 depending on where you live. The cheaper one, Young Silver Plus (https://stlukes.com.au/products/young-silver-plus-250.aspx) will be almost the same as what you are paying for both of you and your partner and includes pregnancy.

    Shop around, you should find way better deals than $6k family plan.

  • Chocka12 on 21/07/2020 - 09:36
    +1

    As before my wife and I had our little one (nearly 6 years ago), I switched to a family plan. Prior to that, my wife had top hospital (for pregnancy) and medium extras cover while I had basic hospital and medium extras. It ended up cheaper for us to be on a family plan providing top hospital and medium extras.

    Our family plan policy provides free cover with same benefits for dependent children up to 25 years of age, although there is a gap for some extras services outside of dental and optical.

    Obviously, everybody's situation is different and health insurers have different levels of coverage and pricing options.

    It's worth spending the time to go through your policy schedule and see what it covers for. Consider whether it might be worth scaling back your level of cover however keep in mind that you might be sacrificing some benefits to do so. Insurers have a habit of spreading common benefits across their tiers to make customers feel they 'need' higher levels of cover.

    With regards to the benefit of private health insurance for kids…. they are human. They can be curious, adventurous, daring and clumsy. There are as prone to sickness, accident and injury like anyone else so it was a no brainer for us to include the kid in our policy, especially since it didn't cost extra.

    • 82norm on 21/07/2020 - 16:37

      Best response so far +10 votes.

  • MissKitten1 on 21/07/2020 - 10:11

    I have found it helpful adding my children as newborns for the following reasons
    - removal of lip ties
    - private hospital sleep school
    - daughter had surgery at aged 3 to remove a growth. Booked in the next week
    - daughter ended up in hospital unwell. Was told there were no beds available to be admitted. I asked if the Epworth paed ward had capacity. An hour later a bed was available in a private room for almost a week.

    I personally wouldn't be without it. The public hospital wait list for tonsil and adnoid removal is frightening and the long wait can have significant impact on a young child's development

  • HeWhoKnows on 22/07/2020 - 16:58

    Everything!
    If you already have a family plan which basically costs the same as 2 singles there is no additional cost

  • dimitryp on 26/07/2020 - 10:50

    family plans usually let you add new kids for free

    • bemybubble on 31/01/2022 - 12:15

      Yes mine certainly did. I am with teachers health and there is no additional cost to family additions.

  • Aureus on 01/02/2022 - 21:32

    Your private health cover has to cover your dependents to avoid MLS. Get a family plan, it's a no brainer as above ^.

    Edit: This is a very old thread. :/

    • lockmc on 02/02/2022 - 11:35
      +1

      Cost more to get a family plan than put my son and me on 1 plan and my wife on another (due to her having pregnancy cover and my son and I obviously not needing that).

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