Did you know your private health fund resets every calendar year? As the end of the year approaches, it’s a good idea to review how much of your extra cover you have actually used.
If you are due for a new pair of prescription glasses, for example, now is the perfect time to get them done. That’s because, with most Australian private health insurance policies, unused benefits are not carried over to the next year.
In other words, if you finish the year without using your health fund benefits, it’s money going down the drain.
When do health fund benefits reset?
Health funds like Bupa, St. Luke’s, Medibank, HCF, nib, and HBF operate on a calendar year basis. That means the health fund benefits reset on January 1st each year, and extra benefits expire on December 31st.
What’s covered by Medicare vs Private Health Insurance Optical Extras
Medicare partially covers eye exams, but it doesn’t include prescription glasses, frames or contact lenses. That’s when your private health fund comes in.
If you hire the extras cover, including optical benefits, you will receive a partial or full rebate on prescription eyewear. The amount you will receive back will depend on your insurance policy.
Most private health insurance plans set a yearly limit on how much you can claim back. However, as it was said earlier, if you don’t use this benefit until December 31st of each year, it will simply reset for next year.
How to check your health fund benefits balance?
Most Australian health funds have an app where you can check your benefits balance.
If you’re with St. Luke’s, for example, you can log in via the St. Luke’s Connect App, navigate to your Policy Dashboard and click on ‘check my limits’.
There you will be able to see how much you have left for each category. However, it’s important to check your usage per person. You might still have $150 for optical, while your partner might have used it all. Usually, you cannot combine benefits.
Don’t wait until December’s rush to use your health fund benefits before they expire
December is a busy time of the year for everyone. Eye test appointments fill up quickly. Stores are just handling high demand. If you’re planning to update your prescription glasses or get a new pair of sunglasses, don’t leave until the last minute.
Book your eye test early and order your glasses ahead of the December rush.