How You Can Save

There are a number of federal government initiatives designed to encourage more people to take out private health insurance which can help you to reduce the cost of your private health insurance. In certain circumstances, if you don’t have hospital cover, you may have to pay an additional surcharge at tax time. These government initiatives include:

• Private Health Insurance Rebate
• Lifetime Health Cover
• Medicare Levy Surcharge

Although some people see private health insurance as something only people on a substantial wage can afford, the introduction in 1999 of the 30% rebate saw a 50% increase in private health fund membership.

(Source: ATO Taxation Statistics)

While premiums do rise as a result of inflation and other factors, the private health insurance rebate has made cover more affordable for more Australians. When comparing the cost with average weekly earnings, the rebate means health insurance costs users no more in real dollar terms than it did in 1998.

Private health fund premiums may vary in accordance with the cost of healthcare and the type of cover you have.

 

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