Medicare Levy Surcharge and Private Health Insurance

AliKay on 25/09/2022 - 07:03

Hi all,

Trying to understand how getting a private health insurance will help not paying the MLS.

So, we as a family paid around $4,400 as MLS last year and I am also paying $100 for VIC Ambulance Membership annually.

  1. If we had a PHI let's say which is $2,000 annually. Will I still be paying the difference of $2,400 as MLS or that will be returned as tax return?

  2. Do we still need to pay for Ambulance Membership or the PHI will cover it?

  3. Is it wise to get just the basic cheapest PHI to avoid MLS or should we actually try and add extras up to a value of say $4,400 which is what we paid last year as MLS?

For context, I am 40 and missus is 36 and we both will have to pay the lifetime loading as well.

Thank you.

Health & Beauty Health Insurance Insurance Medicare

Comments

  • jizmo on 25/09/2022 - 09:57
    +1

    1&2. Accountant should know all that.

    .3. Add if you make a claim excess is around $500 pending on the policy.

    For context.. lifetime loading comes off after 10 Years.

    • CyberMurning on 25/09/2022 - 10:20

      Comes off as in stop increasing after 10 years?

      • zonra on 25/09/2022 - 15:17
        +1

        Lifetime loading stops applying altogether after 10 years of continuous private health cover.

  • jizmo on 25/09/2022 - 10:27

    The 2% extra per year you never took out age penalty . Comes off after 10Y..

    This…

    If you're privately insured before June 30 of the year you turn 31 you will be on the lowest premium rate for life. If, for example, you wait until you're 40 to take out private health insurance you'll pay an extra 20% and if you wait until you're 45 you'll pay an extra 30%. The maximum loading is 70%.

    • Drakesy on 25/09/2022 - 11:57
      +5

      Gotta love the power of private health lobbyists

  • wei13 on 25/09/2022 - 12:27
    1. No you don't pay the difference. Your at not liable for any MLS for any of the days where ALL of your dependents hold eligible private hospital cover.
    2. Check your PHI policy. You don't 'need' to pay ambulance membership anyways.
    3. What's 'wise' is different for everyone. Depends on your goals and your own risk management.
  • CyberMurning on 25/09/2022 - 12:31

    many people dont know about this fact that you can have "holiday" period once in your lifetime

    https://www.privatehealth.gov.au/health_insurance/surcharges…

    Gaps in cover and Days of Absence- to cover gaps, such as switching from one insurer to another, you can be without hospital cover for a total of 1094 days (i.e. three years less one day) during your lifetime, without affecting your LHC loading. This is known as 'Days of Absence'.

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