Health Insurance 6
100% cover in all hospitals.
Any excess or co-payment you agreed to pay for a discount on your premium.
The gap between the amount your doctor or the hospital charges and what’s
covered by Medicare and your fund.
The cost of any pharmaceuticals not covered by the PBS.
The guarantee of a private room.
Government incentives
In the last few years the Government has introduced initiatives designed to make
private hospital insurance more attractive. They include:
Medicare levy surcharge: Once you're over a certain income you need to pay an
extra 1% Medicare surcharge on top of the 1.5% Medicare levy most people pay.
You can avoid this by taking out hospital insurance. Changes to the Medicare
Levy Surcharge proposed in the federal budget give tax relief to single people
earning up to $100,000 and couples/families earning up to $150,000 as they no
longer have to pay the surcharge. These changes aren’t finalised as they still
need to go through the Senate. Once the changes come into effect, it may be time
to consider whether you still want to have hospital insurance.
Lifetime health cover penalises people who take out hospital insurance later in
life, by increasing their premiums. If you are aged 31 or more, and have not
already signed up for health insurance, you'll pay higher premiums than someone
who joined at age 30 or younger.
Age 31 is not the exact cut-off point. Depending on when your birthday is, you
may have a little more time to avoid the additional surcharge. The cut-off date
is the first time 1 July occurs after your 31st birthday. So, if you turn 31 in
January, you'll have until 1 July that year to apply, before you'll go into the
age category that does incur a surcharge.
If you are affected by the surcharge, it amounts to 2% extra per year, up to a
maximum surcharge of 70%. So, for example, if you join at 45 you pay 30% more
than someone who joined at age 30. After you’ve paid the surcharge for 10 years
your premiums revert back to the normal premium paid by people who joined before
their 31st birthday.
Your age
If you’re young and healthy and your main concerns are accidents or emergencies,
you’re unlikely to have a significant wait for any hospital treatment,
regardless of whether you have health insurance or not. However, if you need
elective surgery, such as a knee replacement because of a sporting injury, you
may have to go on a waiting list.
People approaching an age where illness is more likely, or those who think they
might need elective treatment, may decide private health insurance is worthwhile
for them.
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2,
3,
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5,
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7,
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