Is paying health insurance worth it?

Is paying health insurance worth it?

What is private health insurance?

Private health insurance is Australia is some kind of top-up. We have health insurance in the Medicare system paid from the Medicare Levy Surcharge (MLS) in our tax system.

Medicare Levy Surcharge for Singles

Income Rate
$90,001 to $105,000 1.0%
$105,001 to $140,000 1.25%
$140,001 1.5%

Medicare Levy Surcharge for Families

Combined Income Rate
$180,001 to $210,000 1.0%
$210,001 to $280,000 1.25%
$280,001 1.5%

souce ATO Medicare Levy Surchage

So if we want a bit more than the public health system provides we have to pay more. That is essentially private health insurance.

2 Main types of private health insurance - Hospital Cover - Extras Cover.

Private Hospital Cover

In the public hospital system you do not get to choose your own doctor. You may also be on a waitling list for elective surgery.

Private hospital cover allows you to bypase that waiting list, choose your own doctor and be treated as a private patient in a private hospital.

Private Extras Cover

Physios, dentists etc not covered under Medicare. You can opt to cover yourself for these services under your private Extras cover.

Hearing Aid Rebates from Private Health Insurance can vary greatly.

Comparing Health Cover is Confusing

Health Insurance Comparison sites can be confusing. It is difficult to compare 1 health insurance provider with another.


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