Australian citizens are eligible to have a portion of their healthcare costs paid for by a government healthcare scheme called Medicare. People covered by Medicare have the option to purchase private health insurance. You may be wondering, if you already have Medicare, is health insurance worth it in Australia?
Answering the question of whether or not health insurance is worth it in Australia can be complicated. Understanding the coverage you receive is an important starting point. Private health insurance covers a portion of the treatment cost for private patients in private or public hospitals. It may also cover some services that Medicare does not, such as optical, dental, physiotherapy and chiropractic care. (Australian Competition & Consumer Commission, n.d.)
People who have private health insurance may have more healthcare choices. Patients may also receive treatment faster at a private hospital than at a public one, which often will have a longer waiting list. Additionally, the government provides incentives to further encourage citizens to purchase private insurance.
Most Australians pay a Medicare levy of 2% of their taxable income. Taxpayers who have taxable income above a specific amount must pay a Medicare Levy Surcharge of up to 1.5% on top of the Medicare levy. These taxpayers can save money on the surcharge by purchasing suitable private health insurance. (Australian Competition & Consumer Commission, n.d.) With Health Partners you can choose great value cover and have confidence knowing all of our hospital covers can help you avoid the need to pay the MLS.
Taxpayers whose income is below a specific amount may receive a private health insurance rebate from the government if they purchase private health insurance that meets the minimum requirements. If you qualify for this rebate, you will receive it either as lower insurance premiums or as an offset on your annual tax return. The discounts and surcharges that may apply when you choose to purchase or not purchase insurance should factor into your answer to the question, "Is health insurance worth it in Australia?" (Australian Government Department of Health and Aged Care, 2021)
Lifetime Health Cover is a government program that encourages people to purchase health insurance before the age of 31. People who wait until they are 31 or older to purchase private health insurance may pay higher premiums for 10 years unless they are exempt or qualify for a special circumstances category. (PrivateHealth.gov.au, n.d.)
There are several things you should know about private health insurance before deciding whether to purchase it:
The cost of private health insurance varies depending on the company and cover you choose. Most Australians can get a rebate on a portion of their premium expense depending on their income. You can determine how much your rebate is by using the private health insurance rebate calculator. (PrivateHealth.gov.au, n.d.)
People who are aged 18-29 may receive a discount of up to 10% on their premiums. You can keep this discount until you turn 41. This discount does not apply to people who are covered on someone else’s policy as a dependant. (PrivateHealth.gov.au, n.d.)
All insurers must provide updated information about their policies and prices to the Australian government. You can use the comparison tool on the government’s private health website to compare insurance policies from each of the private health insurers in Australia. (Australian Competition & Consumer Commission, n.d.)
The answer to this question depends on your circumstances and preferences. Private health insurance may be worth it to you if one or more conditions apply:
We believe that everyone deserves generous private health insurance and that the increased choice and control you get when you purchase our health cover is worth the cost. We offer confusion-free hospital cover that our members choose to stay with longer than other health funds (healthpartners.com.au, n.d.) Whatever your budget, we offer a great value private health cover to suit your needs. Visit us online to compare plans and get a quote.
If there’s one thing we’re sure of, it’s that our members are satisfied with their health insurance. We've been awarded Australia’s Most Satisfied Health Insurance Customers by Canstar, five years in a row.
Canstar 2019-2023. Compares Health Partners customer responses with average of other brands researched.
Australian Competition & Consumer Commission. (n.d.). Private health insurance | ACCC. Australian Competition and Consumer Commission. Retrieved August 31, 2022, from https://www.accc.gov.au/consumers/health-home-travel/private-health-insurance
Australian Government Department of Health and Aged Care. (2021, August 18). About private health insurance. Australian Government Department of Health. Retrieved August 31, 2022, from https://www.health.gov.au/health-topics/private-health-insurance/about-private-health-insurance?utm_source=health.gov.au&utm_medium=callout-auto-custom&utm_campaign=digital_transformation
6 health insurance questions for under 30s answered. Do I need private health insurance before I'm 30? (2021, June 25). CHOICE. Retrieved August 31, 2022, from https://www.choice.com.au/money/insurance/health/articles/health-insurance-for-under-30s
healthpartners.com.au (n.d.). Award-winning health cover. healthpartners.com.au. Retrieved October 20, 2022, from https://www.healthpartners.com.au/award-winning-health-cover
PrivateHealth.gov.au. (n.d.). Age-based Discount. PrivateHealth.gov.au. Retrieved August 31, 2022, from https://privatehealth.gov.au/health_insurance/surcharges_incentives/discount_age.htm
PrivateHealth.gov.au. (n.d.). Australian Government Private Health Insurance Rebate. PrivateHealth.gov.au. Retrieved August 31, 2022, from https://privatehealth.gov.au/health_insurance/surcharges_incentives/insurance_rebate.htm
PrivateHealth.gov.au. (n.d.). Lifetime Health Cover. PrivateHealth.gov.au. Retrieved August 31, 2022, from https://privatehealth.gov.au/health_insurance/surcharges_incentives/lifetime_health_cover.ht
Selecting the best health insurance if you’re living in South Australia is a decision that can impact your well-being for yourself and your family. With numerous options available, finding the right health insurance provider that offers comprehensive coverage, affordability, and excellent service is important.
When it comes to securing the right private health insurance in South Australia, the choices can be overwhelming. In this article we'll explore the importance of private health insurance comparison.
We all know private health insurance can help alleviate some of the costs associated with medical treatment in a private hospital, but what exactly does this cover and how can you make the best use of having private health insurance?
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