Private Health Insurance Polices to Minimise Tax - My Findings

• 

  leiiv on 09/11/2016 - 16:23

  +1

  I totally do not understand this. I thought the conclusion is that Frank, GMHBA, and HIF are the winners here? Do you plan to only take the insurance for one or two months? What do you mean by "Net"?

  • 

    Hogg on 09/11/2016 - 17:21

    +2

    Sorry, my fault for not being clear.

    I Frank is the clear winner but we will first churn through any funds with promos where we come out with net monetary gains i.e. the gift for sign-up is greater than premium.

    For example the BUPA, AHM, and MBP promos are not worth it because the value of the gift is less than the premiums.

    I will make some edits.

• 

  [Deactivated] on 09/11/2016 - 21:48

  Can you provide some more params for your quote?

  • Hospital Only?
  • State?
  • Lifetime loading?

  Not sure I follow some of the quotes, for example I only get $77.35/month with doctors health fund for hospital only, NSW, single, no lifetime loading, tier 1 rebate.

  Also, I feel like churning health cover providers to claim sign on promos is very time consuming - I'm pretty sure some of the sign on promotions might require a minimum membership term of 3 months or something. Not like churning telco providers, where you get an instant payoff.

  You might want to look at extra's cover too - it's generally easy to break even on extras cover with 2 dental visits, maybe a set of glasses or a physio visit.

  • 

    Hogg on 10/11/2016 - 20:11

    I will edit the params in the main post.

    I must have made a mistake initially. Tried again. Doctors come up as $86.80.month for Tier 1 rebate. $77.45 is for full rebate.

    True about the promos. Hence I have noted, for example AHM requires 3 months, and BUPA 6 months hence no net gain.

    Re extras, maybe in your situation but my calculations show that extras aren't worth it and does not break even. It only seems like I break even if I make extra appointments which I would otherwise not make, while shelling out the gap as well. Without changing my visiting pattern, I would not break even.

    The inner Ozbargainer in me gets too excited about the net gain haha but it's probably not worth it.

• 

  citygal on 09/11/2016 - 22:50

  Very impressive comparison. But Peoplecare took 8-9 weeks for the gift card to come. You will hardly earn -$3. Plus the staff are very suspicious about people claiming gift cards and left. Last time they even asked me to send the gift card back when I cancelled the policy (after the cooling off period). I ended up having an argument with them and eventually they said "Now that you have paid more than $100 for your policy so you're good to go." I was shocked with how they responded with cancellation. And you can't cancel on the phone and must do so in written. Kinda a drama tho I heard their policies are comprehensive.

  • 

    Hogg on 10/11/2016 - 20:12

    Are you saying we will make even less than negative 3? Thanks for warning me about the potential hassles with Peoplecare. Probably not worth it then.

    • 

      citygal on 10/11/2016 - 20:37

      +1

      Yes, very likely you will make less than -$3.

      If you're a NSW resident (single) with 0% Lifetime loading and earn less than $90000 (Tier 0 - max rebate), a basic hospital cover that is the minimum to get you a giftcard is $17.54/week. According to https://www.peoplecare.com.au/giftcard , clause 4 in the T&C said it takes 8-9weeks for the gift card to come. $17.54x8=$140.32 for 8 weeks or $17.54x9=$157.86 for 9 weeks so you will make -$40.32 or even -$57.86 instead.

      Although last time it only took 6.5 weeks for gift card to come to my mail, now they're very aware of people scamming the gift card so may take longer (Even for 6.5 weeks - $17.54x6.5=$114.01, you still make - $14.01).

      If you refer your family and they serve 8-9 weeks, you can make it to positive, assuming $17.54x8x2=$280.64 and you'll get 3x$100 gift card then you'll earn $19.36. But if gift card takes 9 weeks to come, you can make - $15.72 ($17.54x9x2=$315.72). I wouldn't risk it if I were you, given if you follow the T&C you can lose $40.32-57.86 for single cover (very different from your calculation of - $3!) and lose $15.72 for referral (effort of referring wasted).

      • 

        Hogg on 10/11/2016 - 20:49

        You've convinced me. Unless it's a big gain with least hassle. It'd probably be better going with Frank.

      • 

        citygal on 10/11/2016 - 21:22

        +1

        @Hogg:
        My suggestion is that don't go to NIB yet and wait til they offers the $200 Eftpos card again (They had it in June and last month). They offer different gift cards most months.

        Also, HIF basic extra only ($9.4/fortnight cover won't minimise your MLS but can earn you $21.8 ($9.4x3=$28.2 with discount code MATT50 to have a $50 gift card). Referring family can get you another $70 gift card. If you're lucky that they send the gift card within cooling period, you can get full refund for your premium too (which happens to be my case last time).

        Note : Some companies offer gift cards for hospital only cover but some of them require you to purchase combined cover (hospital and extra cover) for you to be eligible for the gift card. You need to look carefully before getting into it.