Medicare Teen Dental Plan
With Medicare not providing much help with dental care for most people, many families struggle to afford dental cover. This can be worrying for parents, as it may mean that youngsters struggle to maintain good oral health later on as they have not got into the habit. The Australian government has recognised this concern, and introduced the Medicare ...
Commonwealth Seniors Health Card
As you get older, you may worry about how you will be able to carry on funding your health care. For many seniors, your health needs may be changing at a time when your income is decreasing. If you already have private health insurance, you may worry about how to afford to maintain enough cover for your needs. If you don’t already have health insur ...
Health Cover for a Disability
Health insurance provides security for times when one is unable to work and support one’s basic needs. Health insurance packages vary, though. This is why it is very important to always perform a health insurance comparison prior to obtaining a policy. Disability Benefits under Private Health Insurance No disability coverage is as varied as the one ...
Private Health Fund Problems? Contact the Ombudsman!
If you’re experiencing problems with your private health fund, you may feel you have exhausted all your options. You’ve talked to representatives of the private health fund, gathered and produced necessary documents to state your case, and still feel that your questions are unanswered or that your problem is unresolved. The good news is, there’s a ...
Feeling Tired All the Time? What Your Health Insurance Covers
Are you feeling tired a lot or struggling with other worrying health issues? You’ll want to get it looked into. Many people are reluctant to consult their doctor out of fear for what it may cost. You may be aware that Medicare will cover GP consultations, but what happens beyond that? If your tiredness symptoms need further investigation, you’ll wa ...
What Medications Does Health Insurance Cover?
Australians can get cheaper medications through Medicare, courtesy of the Pharmaceutical Benefits Scheme (PBS). The PBS covers a lot of medicines, but not all. Fortunately, health insurance extras may cover non-PBS medicines. Here are some things to consider if you are not sure how medicines are covered by your health insurance. What is the Pharmac ...
Hospital Cover: Health Insurance for Inpatients vs Outpatients
If you’re not familiar with the ins and outs of hospital cover, you might assume that it doesn’t matter whether you’re in hospital as an in-patient or as an out-patient. Private hospital insurance normally covers you as an inpatient only, so anything beyond that may not be covered. Read your private health insurance policy for the full details. Wit ...
Compare Health Insurance for the Whole Family
When you’re looking to compare private health insurance for the whole family, it may often be the case that a Family policy may provide the best value for money. Within this, there will be things to think about when you’re looking to compare private health cover that will benefit everyone. How long can children remain on a family policy? For most, ...
Will Private Health Insurance Cover Everything?
When you do a simple health insurance comparison between public (Medicare) and private health insurance, it’s easy to see how the latter can supplement the former in terms of coverage. Private health insurance encompasses the benefits provided by the Medicare system, but can offer more as well. Of course, there’s no such thing as an insurance that ...
Private Health Insurance Comparison for Beginners
Through policies like the Private Health Insurance Rebate and Lifetime Health Cover, the Australian government has made private health insurance both an advantageous and appealing option. Doing a comparison of the various products offered by private health funds is the typical way to find a suitable policy for your needs. There are of course a coup ...
Private Health Insurance and the Medicare Levy Surcharge?
When it comes to your health insurance, something you should be aware of is the Medicare Levy Surcharge. This is essentially an extra fee levied upon higher-income individuals who choose to use the public Medicare system rather than take out private health insurance. This surcharge was implemented to reduce the number of people relying on the public health care system, and it covers not only yourself but your spouse and dependents as well.
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Who Has to Pay the Medicare Levy Surcharge?
According to the PrivateHealth.gov.au website, the following individuals are subject to the Medicare Levy Surcharge (these criteria may change in future, so check direct on the government website):
- A single person with a taxable income over $80,000 annually
- A family or couple with over $160,000 of taxable income (with $1500 added increments for each dependent)
- Those without appropriate cover with a registered health fund
How Much is the Surcharge?
When it comes to the actual Medicare Levy Surcharge itself, the normal amount is 1% of the taxable income on top of the 1.5% levy that most people already pay. So, if you are single and make $100,000 this year, you would normally have to pay an additional $1,000 in Medicare surcharges if you don’t have private health insurance.
How to Gain an Exemption
Luckily, there are some ways around this. According to the same site (listed above), you are exempt from the Medicare Levy Surcharge if:
- First and most obviously, your income level is below the required threshold.
- Your income is over the maximum but you have hospital insurance to cover yourself and any dependents with a registered health fund (with a deductible of no more than $500 for single filers or $1,000 for couples and families).
- You are a prescribed person with no dependents.
- Finally: you are in a high income bracket but purchased health insurance before 24 May, 2000 with deductibles higher than $500 (singles) or $1,000 (couples or families)
So, if you are making less than the above income requirements, then it’s generally safe to assume that you are exempt. However, if you’re on a higher income and seeking to avoid the Medicare Levy Surcharge, there are other ways of obtaining an exemption.
For instance, if you simply take out hospital insurance that covers a specific amount of general hospital expenses and medical treatments, you would be exempt from the Medicare Levy Surcharge. This is, of course, assuming you are purchasing said hospital insurance through a registered health fund only.
The Private Health Insurance Rebate
Furthermore, when you opt for private insurance over Medicare, you could receive as much as 30% back from the federal government in the form of a private health insurance rebate. These rebates are not based on income levels.
There are special incentives for seniors who purchase their own private health insurance: for those aged 65-69, the rebate is 35%, and for those 70 and older it is 40%. At this point, the gap between paying for the Medicare Levy Surcharge and private health insurance shrinks, making it a viable option for people to choose private coverage over Medicare altogether.
So, even though you may make more than the maximum threshold for the Medicare Levy Surcharge, you can now see that there are a few ways to ensure that you are exempt from having to pay it.