As the country continues to deal with COVID-19 social-distancing, Australians have not been able to use many services they regularly pay for, such as gyms.

Key points: Consumer experts are calling for insurance premiums to be reduced

Consumer experts are calling for insurance premiums to be reduced Some funds are considering cash rebates while services are unavailable

Some funds are considering cash rebates while services are unavailable All funds are offering hardship packages for people struggling financially

Most health club facilities have agreed to put memberships temporarily on hold, but when it comes to private health insurance, that has not happened.

And consumer experts want to know why.

They said despite elective surgery being cancelled and routine services such as dental and eye care not being available, insurance premiums have remained the same.

Dean Price, Health Campaigner at CHOICE, said people needed relief.

"Surgeries have been cancelled and other services limited — health funds are charging us for services we can't use," he said.

"It will be some time until our health system is back to normal, but the health funds continue to charge many of us as if everything is normal."

Some funds such as NIB have suggested they will consider cash rebates to members, though they said no firm decision will be made for the next few months.

CEO of Private Health Insurance Australia Dr Rachel David said cash rebates were definitely an option.

"In the next couple of months, if it looks like abnormal profits are accumulating, we will work out how to distribute those profits back to members," she said.

"That can be done in a number of ways, either by a cash rebate that is deposited in the member's bank account, or by reducing the extra's premium going forward, or by actually rolling over the benefit people would have got this year for next year."

The way that option would work is that instead of having $500 for eye care that expires at the end of the calendar year, it would be rolled into the following year.

Should you downgrade your cover?

Health funds have acted to soften the financial blow of COVID-19.

A scheduled premium increase, which was due to take effect on April 1, was delayed for six months.

And many funds have reduced or cancelled waiting periods for people to make claims.

But while the health emergency continues, consumer advocates said Australians should consider temporarily dropping their extras cover, given many people are not using services because of physical distancing restrictions and business closures.

CHOICE also recommended Australians consider downgrading hospital cover, saying people do not need it to be treated for COVID-19.

But Dr David said that advice was "utterly irresponsible".

"We're fully expecting in 6-12 months' time there's going to be massive pent-up demand for surgery," she said.

"We know because it's been consumed by the COVID-19 crisis, the public sector is not going to be able to meet demand, so to get quick access to elective surgery, people are going to need their private health funds."

If you don't need surgery, do you need private health insurance?

For those who do not think they will be needing elective surgery, there is an option to temporarily freeze your membership — but you cannot claim any benefits.

The amount of time you can freeze your account varies fund to fund, but it means you can take up your cover again without having to serve waiting periods.

Dr David said people in financial hardship also had the option of being able to continue to claim benefits while their memberships were frozen.

"All funds are offering hardship packages, so I would suggest that if people are having financial issues, the best bet is to contact your health fund before you consider dropping or downgrading your cover," she said.