Dental extras health insurance – is it really worth it?

Rethink Your Ancillary Cover – Official policy of the Australian Dental Association

On April 1, 2014 new premiums for private health insurance took effect. With Private Health Insurance premiums for the 2014 increasing by 6.2 per cent health fund members have to rethink their insurance cover. With dental fees over the last decade increasing at rates below CPI and the Health Index, insurers still receive premium increases annually twice that of CPI with no corresponding rebate level increase. Policy holders must rethink if this represents value for their money.

The Australian Dental Association states that there is absolutely no correlation between premium increases and rebates paid to members with ancillary cover. The gap that exists between the cost of services and rebates paid is forever increasing.

Choice has said “one way to reduce your premium is to cancel your extras cover if you don’t require a lot of dental, optical, physio, chiropractic and other extras services. It’s also worth considering that extras insurance rarely covers the full cost of your treatment. On average, health insurers pay about half the cost for dental and optical services, a third for medicines not covered by the Pharmaceutical Benefits Scheme, and only a quarter for hearing aids”.“The Association wholeheartedly agrees,” Dr Karin Alexander, President of Australian Dental Association stated.

“Year after year these increases occur but when it comes to the returns paid to members for ancillary care (dental, physiotherapy, optometry, etc.) they remain static.

“If you analyse the facts why would you take out such ancillary cover? All that seems to occur is that the profitability of insurers goes up for this type of cover.”

In the 2011/12 year premiums received by insurers for this cover were $ 4,675,200,000; payouts were $ 3,536,925,000 resulting in an annual profit of $ 1,138,275,000. If that was not bad enough, in the decade before this premiums exceeded payouts by $7,435,394,000!

Private Health Insurers have a privileged position in the health market that is being exploited by them for the benefit of their shareholders. Authorities must return the focus of these insurers to their members – the Australian public – and not their vested interests.

For more information visit the ADA website section of Essential Questions

Make an Enquiry

  • Phone (07) 4051 4580
  • Fax (07) 4031 5226
  • Email
  • Address Ground Floor "Accent on McLeod"
    93-95 McLeod St

    Cairns QLD 4870
  • Hours
    Monday8:00am - 5:00pm
    Tuesday8:00am - 5:00pm
    Wednesday8:00am - 5:00pm
    Thursday8:00am - 5:00pm
It is a requirement for all persons (including accompanying person/s) who enter Future Dental to scan the QR code and fill in a COVID screen.
Did you know you’re at more risk of cracking teeth with those old silver “Amalgam” fillings? Talk to us about amalgam replacement!
The wait is over!You don’t have to wait weeks for your crowns, talk to us about E4D crowns and One Visit Crowns
Did you know? Untreated Obstructive Sleep Apnoea can increase risk of serious health problems like heart attack and stroke
FACT - Dry mouth leaves you at risk of decay, and we can help with your dry mouth.
Lip and Tongue Tie can affect your baby’s growth and development, come and see Dr Bob about how we can help.
Did you know regular efficient flossing keeps not just your teeth, but your gums healthy too? Talk to us about Dental Hygiene
FACT – sometimes migraines are caused by grinding your teeth! Talk to us about Occlusal Therapy and Migraine Treatment and Therapeutic Injectables
Teeth Whitening has never been so easy! Ask us why.
Straightening your teeth doesn’t have to mean braces, talk to us about ClearCorrect