Finding the cheapest health insurance is a huge challenge. The plans are complicated, trying to compare the best value options is difficult and always in the back of your mind is the question, what if I am not covered?
This site helps you select private health insurance for individuals, families, small businesses or if you are visiting from overseas.
What’s important when sourcing the cheapest plan in Australia? Before you waste your hard earned dollars you need to ask yourself the following questions:
- Why do I need health insurance?
- Can I afford to pay for private cover?
- Who needs to be covered in our plan?
- Is Medicare only an option?
- Do we need extras like dental or physiotherapy?
The Australian government has a number of incentives to encourage people to take out private hospital health insurance. These include:
Lifetime Health Cover: A system where people under 30 are “encouraged” take out private hospital insurance cover. If they don’t there is a loading of 2% per annum on their premiums for 10 years. For example, a person taking out private cover for the first time at 40 yo will pay a 20 per cent loading! The loading continues for 10 years.
Medicare Levy Surcharge: This system is a way to “encourage” people whose taxable income is greater than a specified amount (currently $73,000 for singles and $146,000 for couples) to get private cover. If you don’t have an “adequate” level of private hospital cover you pay a 1% surcharge on top of the standard 1.5% Medicare Levy.
Private Health Insurance Rebate: The government subsidises the premiums for all cover, including hospital and ancillary (extras).The depends on your age. under 65 yo receive 30%, 65-70 yo get 35%, 70 plus receive 40% of the premium.
The rebate can be claimed in one of three ways:
- Your premium is reduced making it cheaper each week
- You can be refunded the saving via the Medicare office
- Get the refund in your tax return. Your private health fund will give you a special statement
Drop by and visit us at Cheapest Health Insurance, a great resource to help you select health insurance.
