Paul Peacock, pictured with his grandkids Jack, 10, Michael, 6, Matilda, 8, Molly, 5, and Grace, 4, is pleased to be saving money on his health insurance. Picture: Adam Head

HOUSEHOLDS that don’t shop around for the best deal on health insurance can end up paying more than double.

After about 7000 households joined on day one of a new campaign for cheaper prices, analysis by News Corp Australia has revealed the price variation between comparable combined hospital and extras policies is up to 170 per cent in Western Australia and can also be more than 100 per cent in Queensland, South Australia and the Northern Territory.

Extras cover — which is more lucrative for insurers — is the source of much of the price variation. This is known because News Corp Australia has also updated research done in 2013 by the now-defunct industry regulator on the cost of top hospital cover for families.

Top hospital cover is the most comparable type of policy. It is also what consumer groups such as Choice say households should aim for, at the expense of extras.

Across the nation, the spread between most and least affordable hospital-only policies is between 13 and 26 per cent — except in the Northern Territory, where it is 98 per cent. The smaller variations in the states can still equate to well over $1000 a year.

These figures are broadly in line with the work first done by the Private Health Insurance Administration Council three years ago, which concluded the “the market is characterised by a significant dispersion of prices of similar products”. This was “in contrast” to what would be found in a competitive market, PHIAC said.

NSW’s Rosemary Fox, pictured with her sons Joshua and Daniel, has signed up to the Big Health Insurance Switch. Picture: Sam RuttynSource:News Corp Australia

Since the latest round of premium hikes was made public last Wednesday, the Federal Government and experts have been urging policyholders to shop around for a better deal.

Many appear to be heeding this message, with traffic to the government’s comparison service rising 77 per cent; rival private-sector offerings such as Compare the Market and iSelect have seen visitor numbers double.

MORE: A guide to health insurance jargon and what it means

Meanwhile, consumer network One Big Switch yesterday began a campaign to neutralise the 5.59 per cent average rise. On day one, more than 7000 households joined the Big Health Insurance Switch, which aims to leverage the support of at least 40,000 policyholders to extract a cheaper deal from a leading provider.

One Big Switch campaign director Joel Gibson said a majority of households are considering cutting back on their cover, while a fifth are thinking about dropping it altogether.

“That would be a disaster all round — for health funds, for the public system, for taxpayers and for those families themselves,” Mr Gibson said.

“We have to find a way for people to keep their cover. People power can help do that if enough of us get on board.”

To join the Big Health Insurance Switch go to www.onebigswitch.com.au

* There is no obligation to take up any offer. This masthead’s publisher News Corp Australia and One Big Switch will earn a commission from any accepted deals. News Corp Australia is a shareholder of One Big Switch.