Lois1

Sorry im sure this topic has been done to death but just a couple of questions please....

We have only been here a few weeks and looking into medical insurance and i am overwhelmed with the options!

Just cant make up our minds whether to get it or not, do we just get ambulance cover, and im thinking dental (should the kids need braces later!)?

Also if we were to get for hospital cover as well how much do the preimums rise each year, what we would pay now monthly as 40 year olds, could well be different to what we pay monthly in our 60's, 70's etc - when we have no/minimal income and thats when your more likely to need it!

So whats the general consensus, sorry i know its a very personal choice but just wanted some insight as to people views.... thanks

goldchoccycoin

As you have just arrived (and I assumed only recently registered for medicare eligibility) then you are not hit with the Age Loading - which usually kicks in at 31 years old.

Best place to compare ALL available policies and coverage is the official government website www.privatehealth.gov.au

You can use the Compare Policies function to compare levels of cover.

Hospital cover (even the bare minimum) may be useful to avoid the Medicare Levy Surcharge which is an extra tax imposed on income earners over a certain threshold.

I personally have insurance (comprehensive hospital and extras) both for the tax break and piece of mind should I ever need a knee reconstruction or similar - I'd be happy with public for serious and quickly treated ailments but not things that have long waiting lists. I also make good use of the optical, dental and physio coverage. Last year my total premiums were $1560 and I got more than $1000 back in benefits and I avoided the Medicare Levy Surcharge.

Good luck!

Lois1

thanks for the reply, i have looked at that website and another (iselect, i think) will def look to take out the ambulance and dental its just not the full hospital as just concerned that as prices increase annually by the time it may be most beneficial later in life the premiums are so expensive on a low/no income that we couldnt afford it at that stage anyway? So confusing!

goldchoccycoin

My price has increased from $114 per month to $128 per month in 5 years - not too bad. The prices massively jump if you DON"T take cover before you're 31 years old/or within 12 months of immigrating.

You need to work out the Medicare Levy threshold for your family and see if hospital cover is cheaper than the extra tax. You can always cancel the policy if/when you don't earn enough to warrant it.

It's totally individual so as long as you understand the basics (how much it costs, how much you get back, how much tax etc) then you are the only one who can make an informed decision.

Best of luck with it all!

Bermudashorts

I based my decision mainly on avoiding the additional medicare surcharge levy by not taking out, as the levy would cost more than the insurance. Do you know if this is the case for you or if it likely to be the case in the future? If it is then you might as well take it out now regardless, don't wait as the age weighting comes in after 12 months.

I didn't take dental in the end as the amount it pays out was limited anyway and wouldn't cover anything major. That was with medibank, check your annual. Limits if you do go for that and weigh it up.

Lois1

to be honest this is all new to me, so not sure what the situation is with the levy? Would appreciate it if someone can just give me basic idea as to what it is and how i can work this out?

Bermudashorts

It is pretty easy to work out, depends on your combined salaries and whether they are over certain amount. Can't remember what that is though sorry, maybe $170k? I am sure if you google you can confirm the amount, I am on my mobile so can't easily.

Wol

There are plenty of threads about the topic - do a search.

Basically, if you start insuring when over 30 you pay a 2% extra per year of age over 30 indefinitely. But as a concession if you immigrate and take it out within a year you are deemed to be 30 and don't have the loading - also indefinitely.

Be aware though, as has been said many times, that it's not the same as in the UK: you can be liable for quite hefty charges even though insured. It's up to you whether you think that saving the extra levy is worthwhile.

Siren & Brian

I think you dont need to worry too much about it, until you get here and a job. 12 months before any penalties apply

goldchoccycoin

I think there's some confusion between the Lifetime Healthcare Loading and the Medicare Levy Surcharge. All the info on both is on www.privatehealth.com.au

It's well exlplained and you can do the calculations for your family and income.