$130 a month difference for the same private health cover from the same company

Dr Paul Thesinger has been insured through Medibank Private with top hospital cover and extras but was shocked to discover recently the cover he has was available under a different name for $130 a month less.

“With private health cover premiums rising I decided to have a look at my coverage and compare what I was getting with other providers, as well as the cost,” he said.

“I discovered the coverage plan I had, called Advantage Plus, had not actually been in existence since 2011. Yet all the documentation that I still receive from the company has that name on the top.

“The paperwork we receive clearly states it is Advantage Plus but it is ‘closed to members’.”

Dr Thesinger said he looked on Medibank Private’s own website and was shocked to find the same coverage, under a different name, Top Hospital Essentials and Top Extras, and the premium was $130 a month less than what he was paying.

“We currently pay $534 per month for coverage, yet it is on the website for $404.60,” he said.

“That’s $130 difference a month.”

When you put that out over the 12 months, it’s a difference of $1560 - over seven years a difference of more than $10,000.

“That’s a fair bit of money,” he said.

When he asked Medibank Private about the difference in cost, he was told “the company was under no obligation to let customers know when things were cheaper or if the coverage was even still in existence”.

“They said, ‘That's the way it is and that’s what we are allowed to do’,” he said.

“They sure are quick to let us know when premiums are going up.

“It’s just not right that they can use the old name yet have another product with a different name for a lot less money which does all the same things.

“I get my statement every year but on it nowhere does it state this product is no longer in existence.”

Dr Thesinger spoke to to the Commonwealth Ombudsman’s Office about his case, which said the practice was legal.

“But ethically and morally it’s not,” Dr Thesinger said “I suppose the message I want to get out there is look at your policies and and shop around.

“What the ombudsman told me is, every time you get your annual renewal you should look around, as it’s a case of the buyer beware.”

Medibank chief customer officer David Koczkar said the company wanted customers to understand their health insurance and be able to make informed choices about their healthcare.

“We conduct more than 100,000 personalised cover reviews for our customers in our 84 stores and over the phone every year,” he said.

“Additionally, this year we will proactively contact 250,000 customers to discuss their cover, to make sure they are on the right level of cover and remind them about their limits.

“We also send quarterly activity statements to our customers to remind them what they’re covered for and the benefits we’ve paid.  

“We also send information about extras limits, health and vaccination reminders, as well as age related check-up prompts to customers.”

Mr Koczkar said the company knows there is more to do, which is why it was always looking for new ways to help Australians make informed decisions about their healthcare and help them get the most out of their cover.

“A non-marketable policy is one that is no longer offered for sale but which continues to cover existing customers on that policy, who are able to claim in the usual manner,” he said.

“In the standard information statement we send to our customers at least once a year we advise customers if their product is closed to new customers.  

“Products that are closed to new customers continue to provide value and choices to customers about their healthcare.”

Dr Thesinger said he would not be taking advantage of any of the company’s offers and would be looking for a different provider.