How to Save on Health Insurance

Important points:

• Select a level of cover that suits your individual circumstances so you don’t spend money on services you won’t use.

• Be realistic about what you’re covered for and what you’ll actually need.

• If you’re looking to take out health insurance, shop around to find a policy that offers value by balancing the premiums you pay with out-of-pocket costs you incur.

• If you already have health insurance, review your policy. Compare your current health cover costs and features to other policies on the market to ensure your costs are competitive. You can use a comparator like iSelect to help you save time.

Educate yourself about government initiatives that can affect your private health insurance costs:

• Avoid paying additional taxes. The Medicare Levy Surcharge (MLS) is an additional tax (on top of the standard 2% Medicare Levy) applicable to Australian taxpayers who don’t have private hospital cover. You can avoid paying the MLS by taking out private hospital cover with an excess of $500 or less for singles or $1,000 or less for families/couples. Click here to find out moreinformation on the Medicare Levy Surcharge (MLS).

• Pay less on private health cover by making the most of the Australian Government Private Health Insurance Rebate. The rebate helps Australians cover the cost of their premiums 
  [1] and is calculated based on an individual’s age and income. Click here to find out more about the Australian Government Private Health Insurance Rebate.

• If you take out private hospital cover before the age of 31, you can avoid paying Lifetime Health Cover (LHC) loading. This loading adds 2% onto private health insurance premiums for any individuals who have not taken out private hospital cover by 1^st July following their 31^st Click here to find out more about Lifetime Health Cover.

Points to remember:

• When considering which level of hospital cover is right for you, remember it’s better to have too much cover, than not enough.

• Don’t forget about ambulance cover. Depending on which state you live in, some private health insurance policies will include ambulance cover, and some won’t. Be sure to check with your health fund regarding the level of ambulance cover involved in your individual policy.