Millions of Australians risk throwing hundreds of dollars down the drain unless they utilise the benefits of their extras health insurance policies by 31 December.
Extras policies typically cover services like dental, optical, physiotherapy, chiropractic and more, but many of the nation’s top health insurers reset these benefit limits each year on 1 January.
Unless you claim some, or all, of the benefits you’ve paid for and are entitled to, you could be throwing money away.
Don’t delay
Major health funds like AIA, Australian Unity, Bupa, Frank, GMHBA, HCF, HIF, NIB, Qantas, See-U and Westfund are among the funds that reset on 1 January every year.
And it’s not just loose change. Compare the Market says one basic policy, for example, offers up to $2,700 in annual extras benefits – then they disappear and reset unless you claim them by 31 December.
Higher levels of cover may have even bigger benefits. Australians need to squeeze every last drop from the policies we’re paying for. We’re still very much in a cost-of-living crisis so if you’re one of the 13.7 million Australians paying for an extras policy and you’re not utilising every last benefit you’re paying for, you’re a mug.
If you’ve been putting off that dental check-up or physio appointment, now’s the time to act so your hard-earned money doesn’t go to waste
Check in with your health fund, as you could have hundreds of dollars left to use on services like teeth cleaning, remedial massage, acupuncture, prescription glasses or even a gym membership. If I had the choice between getting a new pair of glasses before the end of the year or lining the pockets of health insurers, I know what I’d pick.
The key is booking in your appointment early, as a lot of clinics alter their opening hours over the Christmas and New Year period.
Different dates for different insurers
It’s also best to check your policy brochure for how your fund defines ‘annual’, as it may be based on:
- The calendar year between 1 January and 31 December.
- The financial year between 1 July and 30 June.
- A membership year, which resets annually on the 12-month anniversary of when the policy was purchased.
- A rolling year, which resets 12 months from when the last benefit was claimed.
Every extras policy comes with limits on how much you can claim annually for different treatments. At the crux of it, your claimable amount varies based on the type of service you have and the cap your health fund sets. Some funds reimburse a percentage of the cost of a treatment, others offer a fixed dollar amount per service every year and some even cover the entire amount up to an agreed limit annually.
Use it or lose it
And, if you’re getting to the end of the year and finding you haven’t claimed as much as you thought you would, it could be time to reassess your extras policy. You wouldn’t order a large meal at your favourite takeaway outlet if you’re not feeling that hungry, so why over-order on your extras? It’s wasted money.
If you’re struggling to use some or all the benefits you’re entitled to and paying for, see if you can move to a lower level of coverage that gives you access to the services you actually want to use, with a smaller price tag.
Compare the Market’s 2025 Household Budget Barometer found that 30 per cent of Australians have skipped dental appointments in the past 12 months, while 17 per cent of people surveyed have cancelled or delayed routine health appointments, such as hearing tests, optometrist visits and even cancer tests. These are things that many extras policies cover, so if you’re paying for it and you haven’t utilised the services, there’s really no excuse.
Top tips for finding the right extras policy
Is there anything you can ditch to save on costs? – Have a think about the services you’re actually using and if there’s anything you could do without. A basic policy may suit things like general check-ups or physio sessions, but you may need something more comprehensive if you’re looking at major dental, psychology or non-PBS meds. Check your policy’s brochure to understand what’s covered.
Waiting periods may still apply – Don’t assume you’ll be able to claim right away, as waiting periods may still apply for extras. The good news is that health insurers will recognise any waiting periods you’ve already served, so don’t let that fear deter you from switching if you find a cheaper or more suitable policy elsewhere.
One size doesn’t fit all when it comes to extras – If you’ve got a family or couple’s policy, remember that limits might apply to the whole policy—not each person. That means you could hit your cap faster than expected if multiple people are claiming.
