What’s the difference between an Excess and a Co-payment?
Both Excess and Co-payment options are designed to lower your health insurance premium. In both cases, you are agree to make an out-of-pocket payment for hospital admittance, in exchange for a lower up-front premium. An Excess is the amount of money you pay towards hospital treatment, regardless of the number of days you are in hospital. Some Health Funds charge the Excess for your first admission to hospital while others charge the Excess every time you are admitted, so be sure to read the policy details. A Co-payment is the amount of money you agree to pay for each day that you are in hospital, up to an agreed amount. For example, a Co-payment agreement of $50 means that you pay $50 for each day you are in hospital. There is usually an upper limit to the total number of Co-payments you will be required to make in a year, or for each stay in hospital.
