Medicare started in 1984.
This date also marked the beginning of Private Health as we know it today.
It was used to ease the burden on the public sector.
Prior to that, private health existed in the form of group collectives. Think of them as the olden-day Go Fund Me.
Private health insurance helps cover the cost of your health care. With it, you can claim a sum of money (known as a benefit) from your health fund. That money helps cover the cost of your treatment.
There are two types of private health insurance.
Hospital Insurance and Extras Insurance.
The short story is, if you’re earning more than $93,000, it’s a no-brainer.
You might be paying a Medicare Levy Surcharge if you don’t have private health cover and your annual taxable income is over $93,000 as a single or $186,000 as a couple or family.
This surcharge hurts. A LOT.
The surcharge is payable for each day you don’t have private health insurance within a financial year. That means if you don’t purchase a policy before the 1st of July 2023, but buy one on the 24th of November 2023, you’ll pay a charge for each day you weren’t covered between those dates.
If you're not earning more than $93,000, it might make sense to take on health cover for other reasons.
If you're under 30, some funds will give you a discount of up to 10%.
The reward benefits can also outweigh the cost if you plan well and claim benefits such as discounted gym memberships or flights.
Why does a health insurer offer these rewards?
The healthier you are, the less likely you are to claim.
It's a win-win.
How to avoid the Surcharge
Ensure you have the appropriate level of cover.
Below is a recording of our Private Health Cover Masterclass made for the SIS Club a few years back. However, the content covered is still relevant today.
Tristan was a Private Health Expert for the Advice Industry, and he joined SIS Club as a member, so we had the opportunity to create this. It's a deep dive, but it's everything you need to know.
You can access the slides here.
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Over 90% of our clients benefit from our Private Health provider.
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