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
$97,000 or less 0%
$97,001 to $113,000 1.0%
$113,001 to $151,000 1.25%
$151,000 1.5%

Medicare Levy Surcharge for Families

Combined Income Rate
$194,000 or less 0%
$194,001 to $226,000 1.0%
$226,000 to $302,000 1.25%
$302,001 1.5%

source 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.

New Trend 2024

Young people under 30 are behind a spike in demand for private health care, reversing a years-long trend.
The private healthcare sector says demand for mental health support and treatment for endometriosis and addiction services are behind the increase.

https://www.abc.net.au/news/2024-12-03/young-people-drive-demand-for-private-healthcare/104677778

Compared to the US

In 2024, the average health insurance premium for families carried a price tag of $25,572 per year (AU $39,956)

https://www.cbsnews.com/news/health-insurance-costs-inflation-denials-luigi-mangione-united-healthcare/

Tags
Share

SEARCH ARTICLES

advanced search tips examples: "Yoga Meditation" Therap* +Yoga +Meditation

Recent Posts

Sleep better

Jun 25 2024
Sleep better

Protein Decoys

Mar 21 2024
Protein Decoys

Showing Initiative

Oct 27 2023
Showing Initiative

All Articles