Health Insurance. Single, No Dependents, Late Twenties, High Income,

LThisIsAUsername on 09/07/2018 - 08:24

Just did the ABC quiz, and realised that I need health insurance this FY

The details: Single, no dependents, in good health / play a bit of sports (keen to use a phyiso), 28, 147k/pa,

Coincidentally, I've got a dentist appointment booked for about $2k of work in two weeks (consultation was done a few months ago).

Never had health insurance before (was on relatively low income).

Work has a couple of discounted providers - medibank, bupa, peoplecare.
I'll look into them.

Could you guys recommend some more providers?

Really new to this. I've never dealt with / my family has never had health insurance before.

Health & Beauty

Comments

  • bobbified on 09/07/2018 - 08:37
    +2

    Different insurers have different coverage amounts for the different items. Then there's the different levels of cover offered by the same insurer.

    I think you'll need to have a look at one insurer to get an idea of what PHI actually offers and then you can do a comparison with other insurers.

    Have a read of this: http://www.health.gov.au/internet/main/publishing.nsf/Conten…

    It'll be difficult for anyone to tell you which one to get given that everyone's circumstances are different. Even if they could, it'll still be useful for you to learn and understand exactly what you're paying for.

    • boomramada on 09/07/2018 - 08:59
      +2

      As above, its too hard to recommend any kind of insurance, that is why there are 200+ odd products out there to suite anyone. Even Qantas got health insurance :/
      Pick one that suite you then once in while review it and change it if required.

      For dental, you need extras covers.

  • vinni9284 on 09/07/2018 - 08:53
    +4

    1 - If you are on $90K+ a year, then you'll get thrashed at tax time if you don't have PHI (IMO another govt. rort to waste your money on PHI)
    2 - As you're single, IMO the extras pay jack for Dentistry (Extras are worth it, if you have a family)
    3 - Look for not for profit PHI providers. Medibank, NIB and the like; like to take and not give as much. Try Frank Health (GMHBA)
    Cheers

    • ThisIsAUsername on 09/07/2018 - 09:05
      +5

      This is what I find BS about the whole system.

      I'm forced the pay health insurance due my income bracket (fair enough),

      But the health insurance I get is useless ("extras pay jack for dentistry").

      How'd you find out about Frank Health? Any others?

      • vinni9284 on 09/07/2018 - 09:12
        +1

        due my income bracket (fair enough)

        Well .. not only you get forced to pay (well not forced … forced "choice" LOL) for PHI due to your income bracket .. you also get thrashed on top with tax as you are on a higher tax threshold.

        Edit: I was with Medibank for many years and once when they went to privatisation, they have gone backwards.

        I read reviews on Frank and there are many positive ones. Hence requested a quote and was cheaper than the rest.
        However never claimed (touch-wood) so I cannot say much about the service …

        https://www.productreview.com.au/p/frank-health-insurance.ht…

        Cheers

      • Ryanek on 09/07/2018 - 09:21

        You're not being forced mate, you can choose not to buy insurance and pay the levy. Either way, we all need to contribute to one of the better health systems in the world.

        • vinni9284 on 09/07/2018 - 09:24
          -2

          Either way, we all need to contribute to one of the better health systems in the world

          Easy fix, reduce immigration otherwise there will be no efficient health system by the way it's going :P

        • bobbified on 09/07/2018 - 09:24
          +3

          You're not being forced mate

          Sure we're not… We just need to pay a penalty tax if we don't!

          Either way, we all need to contribute

          We already do contribute more based on % proportion of income - that means the actual amount gets higher if income is higher. The surcharge levy is an EXTRA contribution on top of that!

        • vinni9284 on 09/07/2018 - 09:26
          +1

          @bobbified:

          No! Of course not!

          • No PHI, thrashed $1K tax
          • Yes PHI, thrashed $1K+ on PHI and get jack

          :p

        • CheapSticks on 09/07/2018 - 10:31

          @vinni9284:

          We need immigration to pay for the ageing population - healthcare/pension etc etc !

        • vinni9284 on 09/07/2018 - 10:32

          @CheapSticks:

          Agree however that is assuming that the immigrants assimilate correctly, work and pay their taxes and not get caught up into receiving benefits.

          I said reduce rather than abolish

      • Cheaplikethebird on 09/07/2018 - 09:29

        Here you can can find all the nonprofit PHIs -> https://membersown.com.au/new-not-for-profit-health-funds-2.…

        • onevstheworld on 09/07/2018 - 11:16

          Those aren't the only non-profits. I believe the only for-profit funds are NIB, Medibank and BUPA.

      • cloudy on 09/07/2018 - 10:35
        +1

        You don’t have to pay for extras if you won’t want to, only hospital and you won’t get the xtra tax.

        Go to iselect or some other comparison website to help cut down the jargon you wil, be given. There are so many providers and it’s unlikely what is good for me is good for you. So better DYOR.

    • kipps on 09/07/2018 - 09:58
      -1

      Thrashed is a bit of a strong word. 1.25% medicare levy surcharge on a $147,000 income is about $2000 for the year. Base private hospital insurance for a single is all that is required to defeat this extra tax but comes at a cost. Find the cheapest PHI you can to be tax effective if you don’t care about cover. But if you’re not careful you will find cover which costs more than the MLS would otherwise have been.

      • vinni9284 on 09/07/2018 - 10:05
        +1

        Thrashed is a bit of a strong word.

        No it's not. You are throwing your money away for no benefit. PHI has minimal benefit depending on your claim. You are always $1000's out of pocket for the same level of cover you will get from a Public Hospital for free. I understand that this is another topic.

        Base private hospital insurance for a single is all that is required to defeat this extra tax but comes at a cost. Find the cheapest PHI you can to be tax effective if you don’t care about cover

        That is called Junk cover. You pay for legal tax avoidance and get more jack then full cover (which pays a little less jack)
        Why pay $1000 PA on Junk Cover?

        If I pay $1K+ a year on PHI, I want some ROI if I happened to claim. Not rejections of claims. Typical Insurance Business Model

        https://www.choice.com.au/money/insurance/health/articles/ju…

        Do you have PHI to avoid MLS?

        Cheers

        • kipps on 09/07/2018 - 11:33

          More subjective adjectives without applying objective reasoning.

          Yes I have PHI.

          Your characterisation of cheap PHI as “junk” but without articulating why it is junk is most unhelpful. It is always a case of read the PDS and understand what is excluded or included.

          Whatever “junk” cover is, it is better than no cover provided you’re gettin something out of what otherwise would have been $2k in MLS.

        • vinni9284 on 09/07/2018 - 11:44
          -2

          @kipps:

          read the PDS and understand what is excluded or included.

          The PDS is clear as mud. Only Absract

          There has to be a reform on wording, carification and the interpretation of the PDS.

          Why has there not been a reform?

          Because when there is clarity & known literally that PHI pays jack, doesn't cover that much and you're thousands out of pocket ….
          …..

          … There will be a exodus.

          Would the govt. want that? Nope!

          Your characterisation of cheap PHI as “junk” but without articulating why it is junk is most unhelpful. It is always a case of read the PDS and understand what is excluded or included.

          More subjective adjectives without applying objective reasoning.

          Basic level (bottom entry level tier) of cover = Junk. However they word it …

          Have you read the link I attached from Choice?

  • [Deactivated] on 09/07/2018 - 09:20
    +3

    You should be posting this on one of them dating sites.

    • vinni9284 on 09/07/2018 - 09:22

      Hahahaha!

      The OP will definitely be a catch!

    • bobbified on 09/07/2018 - 09:52
      +1

      Only if OP fixes his teeth! haha

  • whooah1979 on 09/07/2018 - 09:36

    op have thought about a starting a small business to reduce your taxable income this fiscal?

  • Melburnian on 09/07/2018 - 11:33
    +2

    Extras is a bad deal for most young people with no dependants.
    To avoid paying Medicare Levy Surcharge due to your high income, you will need a hospital policy, not extras.
    Dental work in two weeks' time is not relevant, unless you can find an extras policy that will waive the waiting period for claims (usually a couple of months).
    Extras would only be worth it if you have done the maths to prove that you'd get back more in claims than you pay in premiums. Otherwise, putting money aside to pay out of pocket for your dental, physio, etc. would be more cost-effective.

    • weirdthin on 10/07/2018 - 13:38

      This comment 100%. Do your sums, but if you’re fit, high income, and don’t foresee a big need to claim the extras, maybe your most cost effective option is base hospital cover and saving your own money for extras.
      Irrespective of my situation re hospital cover and income/MLS, I am 28 and fit, I was only occasionally claiming optical on extras, and forking out more for extras cover and optical out of pockets than I ever would have simply saving and self-insuring. Ditched PHI and never looked back (until age 31, that is!)

  • Love a bargain on 09/07/2018 - 12:46

    Hospital cover: Either get the cheapest qualifying one for tax and don't expect to be able to claim anything or get something half decent. But even with a young person basic cover from medibank (from several year's back), which I thought I was taking out purely for tax minimization purposes, I was able to claim back some of the costs of a surgery for an injury I sustained from an accident.

    Extra covers: They are worthwhile if you use dental and/or optical and/or play sports (hence more likely to injure yourself and need physio). Can easily get your money worth from those (esp if you're willing to go to a dental practice that offers no gap service).

    You'd find the discounted corporate plan are often better values than the retail plans available so do take a look at those.

  • Tech5 on 09/07/2018 - 13:00

    BUPA is the best for dental cover

    • ThisIsAUsername on 09/07/2018 - 14:32

      Have you used their site to find an appropriate cover?

      Their website displays an array of tiles of different cover titles and prices.

      Bloody impossible to compare cover plans.

      • onevstheworld on 09/07/2018 - 17:29
        +1

        That's probably intentional. It's not in their interest to be able to directly compare their plans with other funds.

      • Tech5 on 09/07/2018 - 19:00

        A basic way of summarising it is:

        The silver, gold and platinum extras will give you 65%, 75-80% and 90% cover of all general dental such as fillings, extractions with no yearly limit.
        They will also almost completely cover a clean, checkup and xrays every 6 months.

        The bronze and your choice extras will cover around 60-70% of all general dental up to a certain yearly limit, but cleans/checkup/xray is part of tha tlimit as well

        This is if you go to a preferred provider though

  • chillybags on 09/07/2018 - 17:48

    I joined MyOwn for similar reason as you OP. they waived 2 and 6 month waiting periods and 3rd month was free so i signed up for extras for 2 months, claimed new prescription sunnies and went to dentist for a checkup. Cancelled the extras in the 3rd month. I only have accident cover as I am young and healthy. It is $15ish per week after the government rebate.

    They have AIA vitality which is up to 50% off 2 x qantas flights per year (which is difficult to obtain, but 40% is achievable), up to $500 in gift cards and discount gym membership as long as you are exercising. I am very happy with them so far.

    • Melburnian on 10/07/2018 - 15:18

      May I ask, what is accident cover?

      Public hospitals treat you quickly in emergencies, and an ambulance membership at least benefits the ambulance service rather than adding to the profits of the private health insurer.

  • savage bargain on 10/07/2018 - 09:41
    +1

    The government actually has a comparison site for health insurance so you can put in your criteria, if you're able to access restricted funds, and then search by premium. All the summary sheets are there and you can also look at the funds by what they pay out and average gap.

    https://www.privatehealth.gov.au/dynamic/search

    Most people pay more in extras than what they get back - even our family of 3 where we are with a restricted fund that gives more back that other funds. So do the maths - you will likely just need hospital cover.

    It might seem like a waste, but after an accident, my brother at 23 needed surgery that only 2 surgeons in Australia did. Through the public system, he would've been on bags for the rest of his life, but through a series of 3 surgeries, one of these 2 surgeons could actually reduce the damage enough he wouldn't need bags. If he didn't have private health, his choice was bags from 23 years onwards or $13,000. Most young people don't end up needing private health, but it's a gamble and sucks if you end up as someone who does, as our public health isn't perfect.

    Not to say our public system isn't great - I'm currently using public health for the birth our 2nd child as I prefer to the care to what's available privately - but there are non-urgent/non-essential cases where public doesn't provide the cover, such as with my brother's example.

  • [Deactivated] on 10/07/2018 - 10:04

    Extras aren’t worth it ( also won’t kick in prior to your 2k of work that needs to be done). It’s more cost effective to pay for these out of your savings.

    Just get enough hospital cover to prevent the Medicare levy surcharge from kicking in. So anything that costs less than 1.25% of your income with excess of $500 or less.

  • HeWhoKnows on 10/07/2018 - 13:29

    Simple answer. Go here:

    https://www.iselect.com.au/health-insurance/

    and/OR

    https://www.comparethemarket.com.au/health-insurance/

    Too late for your dental appointment as pre-existing ailments are not covered

    • Melburnian on 10/07/2018 - 15:21
      +2

      These for-profit comparison sites only advertise the policies that they receive commissions from. They don't tell you all your available choices. The government website in comment above is more reliable/transparent.

      • onevstheworld on 11/07/2018 - 09:52

        Yes. There's a fairly obvious conflict on interest there.

        Scanning through their pages, neither of those brokers cover all available funds.

  • chami on 10/07/2018 - 23:20

    At 68 I have had health cover for 30 years and had FORTUNATELY had only one visit to hospital.

    Looking at the annual average cost by age:
    http://datawrapper.dwcdn.net/6oHRd/5/
    At costing me $2500 per year, now at 68 I have a 50% chance of breaking even. AND I have to pay the first $500
    It is too late for me to dump it now..
    If I were I'd pay the loading and put the excess savings into shares. I would be ~$50K better off.

    Ask any nurses, or those in health profession, if they have private cover?

    Keep fit!!!!

    • onevstheworld on 11/07/2018 - 10:07

      Insurance (all types, not just health) is a funny expense and has some warped logic to it.

      Personally, I hope I NEVER break even… breaking even would mean I'm in some sort of health/financial/legal crap. Happy to know I'm covered for those unfortunate situations, but I'd prefer not to get my money's worth.

    • [Deactivated] on 11/07/2018 - 12:52

      I only pay $85/month so way less than the surcharge would be - there would be no ‘savings’. It would likely be the same for the OP.

      • chami on 12/07/2018 - 11:35

        Yes, if he can get it for $1020pa. Who are you with and what is covered? The OP is talking of physio and dentistry as well.

        The frightening part of the http://datawrapper.dwcdn.net/6oHRd/5/ graph is
        - many(most?) +65yo do not have private cover as they are on senior health card, like me when I stop work.
        - and many +75 have died
        so a smaller number of people in the age brackets. It would be interesting to see the median not the average. It would be zero for some groups under 45.

        So it is you young ones that are paying for us oldie- thanks! But again it is only 2 coffees a week! Just treat as another income tax :-)

        • [Deactivated] on 13/07/2018 - 20:52

          Actually if he’s on 147k/year then anything under $1800 is saving him money.

          I’m with Frank, it’s basic hospital but they actually cover a lot more than most basic hospital policies. As I mentioned above even if he wants dental and physio it will be cheaper overall to pay these out of pocket.

          My coffees don’t cost that much haha

          To be honest that’s quite scary. I wish the Government would just stop subsidising PHI and use that money on the public system.

        • CheapSticks on 14/07/2018 - 11:37

          @HippoHop: isn’t frank cover only covering public hospitals and as such doesn’t get you ahead of queue?

        • [Deactivated] on 15/07/2018 - 13:37

          @CheapSticks: it depends which one you’ve got there’s basic hospital and basic private hospital.

          As a young healthy person I’m not particularly concerned. I just have it for tax purposes.

    • chillybags on 11/07/2018 - 19:09

      It depends, for me the tax savings are greater than the cost of basic health insurance with hospital only so it works for me. I could probably get a slightly higher level of cover too if i wanted the peace of mind and still break even.

      However, yes widely accepted amongst health professionals that extras cover is not worth it though especially if you are young.

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