What is the difference between private health insurance and extras cover?

When choosing the right private health insurance policy for you or your family, make sure you know the ins and outs of hospital and extras cover. With ExtrasJar’s help, make the right decision.

When it comes to private health insurance and extras, there’s a lot to consider and understand. Unfamiliar words, obscure terminology and confusing structures, it’s not always straightforward. However, with a firm grasp on the industry and its processes, you’ll quickly be able to secure the best outcomes for the health of your family and your bank account.

Here at ExtrasJar, we believe one of the most important things to understand when considering and comparing private health insurance policies is that there is a vast difference between hospital cover and extras cover.

Let’s jump right in!

Hospital cover vs extras cover

Hospital cover

Insurance for hospitalisation and in-hospital treatment. It provides a level of financial compensation based on your policy which differs from provider to provider. However, the Australian government introduced a tiered system in 2019 that splits up private hospital products into four levels – basic, bronze, silver and gold. This makes inclusions and exclusions easier to grasp.

By noting what clinical categories each tier holds, you’ll be able to see the features that are most important to you. Being in the wrong tier may be the reason you’re paying more than you need or losing the support for the care that you need most.

Extras cover

Also known as general treatment or out-of-hospital care, extras include an array of services both conventional and complementary that are not supported by Medicare. This encompasses things such as physiotherapy, psychotherapy, dental care and hearing aids. Extras cover provides financial support as you access these kinds of services.

A tiered system similar to hospital cover policies is typically used to dictate the comprehensiveness of your extras cover. As you elevate your tier, you’ll be covered for more treatments but be required to pay more. This traditional mechanism is very rigid, and Australians commonly find themselves in the wrong tier for their personal health requirements just so they can grasp a singular benefit higher up. Most insurers require customers to refill your extras fund each year as well, because even if you hardly draw on it or don’t at all, it doesn’t roll over 

ExtrasJar subverts the old, unequal and unfair extras approach for your benefit. To sum it up nice and quick:

  • Go with our pre-designed tiers, or create an entirely personalised extras plan
  • Complete freedom to use your funds on the general treatments you require
  • No reason to pay for things you don’t need
  • Funds rollover each year
  • A pioneering investment mechanism makes it likely your fund will grow
  • Enjoy discounts and benefits with ExtrasJar health partners 

Do you need hospital and extras cover?

The truth is, just about everyone needs both. We know that good health isn’t dependent on hospital visits, nor trips to the dentist, but to be covered just in case offers you unparalleled peace of mind. Some young Australians are almost entirely focusing on health extras as that’s most likely to make a short-term difference.

Many insurers offer hospital and extras packaged as a bundle, sometimes at a discount. It’s also possible to take out hospital and extras cover from two different insurance providers. Weigh up your options and make sure to remember that your unique situation is paramount to your decision, not the preconceived structures of potential insurers. At ExtrasJar, we back that.

Pay for the care you need with ExtrasJar

At ExtrasJar, we understand there’s no one-size-fits-all approach to hospital or extras cover, so we revolutionised the system. Find versatility, discover true control and grasp the healthiest version of yourself, inside and out, with ExtrasJar today.