Looking for Advice. Should I Get Private Health Insurance?

Ldefaz on 26/10/2022 - 18:48

Hi All, I just turned 31 and I do not currently have private health insurance. My fiancé has had private health since she was 18.

I earn just over 90k and I'm worried I will begin paying the Medicare Levy Surcharge (1%) this financial tax year, unless I get private hospital cover. And apparently every year over 31 will begin making it more expensive for me to get private health later on. I'm in good health, I only go to the dentist for a check up and clean twice a year. No optical / chiro or anything…currently.

As far as i can tell the Medicare Levy Surcharge will be roughly $1000. Most basic private health insurance policies are around $1020-$1140.

Any advice or recommendations will be greatly appreciated.

Health & Beauty Health Insurance Insurance

Comments

  • Vulgar on 26/10/2022 - 19:26
    +1

    Get the cheapest barebones insurance (that still qualifies for a surcharge exemption) https://www.privatehealth.gov.au/dynamic/search. I think Frank is the cheapest (if you don't have access to company-specific funds).

    The longer you wait the higher the health insurance penalty will be and the higher the surcharge you will pay as your income grows so it's better to get it now.

    One thing you can do is understate your income when applying so you get a higher subsidy but you have to pay back the difference when you do your tax return. I also use the premiums to help with the credit card churn spending.

  • Hardlyworkin on 26/10/2022 - 19:27

    It depends what your combined income with your fiance is as to whether you will pay the surcharge. Assuming you do your tax as a couple.

  • dBagDealer on 26/10/2022 - 19:28
    +2

    I have thought about it alot and I'd say take it out. you'll end up paying more as you start making more money later in life and the 2% LHC loading each year is going to make a noticable difference. Chances are you won't use your insurance for a while but always good to have it for when you end up needing it.

  • CyberMurning on 26/10/2022 - 19:30
    -1

    Read

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

    Especially under
    Permitted days without hospital cover
    That is not everyone know!
    So you have another 3 years without paying hospital cover.

    And if you are healthy, paying loading later is still cheaper than taking hospital cover right now and the next god who know (and not using it)

    • Drakesy on 26/10/2022 - 19:34
      +2

      Ah little detail here…

      If you have held hospital cover on or after your Lifetime Health Cover (LHC) base day

      You still need to have cover when you turn 31, but yes if you want to use your entire allocation you can cancel it and then take out 3 years and run the gauntlet.

    • Benoffie on 26/10/2022 - 19:57

      Can i just say, using this up merely as a means to put off what you can currently afford is dumb.

      On two occasions we've had to pull the trigger on this allowance - both redundancies over the years. Having the ability to drop it without penalty was a life saver in genuine times of need. Added to the flexibility the providers gave us in non payment periods.

      We're heading for a recession. I strongly suggest not using this provision unless absolutely necessary.

  • Drakesy on 26/10/2022 - 19:31
    +1

    Yes,
    Get the crappiest POS insurance, it'll be cheaper than paying the additional tax (i think my insurance came to around $650), tax would've been around $1000 had i not taken it out.

    Classic private health BS lobbyists and the liberals pandering to them.

    • defaz on 26/10/2022 - 19:58

      Who are you with? Do you have hospital cover only or have you got extras only?

      • Drakesy on 26/10/2022 - 20:48

        Hospo only
        $750 excess with qantas
        Premiums have gone up significantly (jumped up a couple of tax brackets) still cheaper than tax though

  • 87percent on 26/10/2022 - 19:34
    +4

    I hear Medibank will be looking for more customers

    • star-ggg on 26/10/2022 - 23:50

      The irony is they're a listed company which means they price their policies for profit. There are plenty of non profit insurers around.

    • holdenmg on 27/10/2022 - 10:14
      +1

      I remember in the early days it was "Medibank Private"

      I guess "Private" means something else now.

  • MS Paint on 26/10/2022 - 19:43

    I'll answer for @brendanm

    NO

    • brendanm on 26/10/2022 - 21:17
      +2

      Doing the lords work.

    • avoidfullprice on 27/10/2022 - 07:59

      Pam said otherwise!

  • Wiadro on 26/10/2022 - 19:52
    -3

    you dont need actual hospital cover, get extras only cover which has cover.
    i pay around 400 a year

    • Nousernamehere on 26/10/2022 - 20:47
      +4

      you dont need actual hospital cover, get extras only cover which has cover.

      To be able to avoid the MLS, you need to have hospital cover.

      To answer OP’s question, I’m lucky to have a discount with my union which means I pay about $660 a year for what amounts to a ‘junk’ policy to avoid it. Rather give the money if it actually went to Medicare, but considering it goes just into general revenue no point paying it.

    • Shadowsfury on 26/10/2022 - 21:32

      That's not right to avoid the medicare levy surcharge

  • brendanm on 26/10/2022 - 21:21

    As an actual answer, do you both earn more than $180k combined? If not, no MLS.

  • victinini on 26/10/2022 - 22:41

    I was in the same position last year and decided to do it. It’s not just about finances, it’s about psychological health. Incentivising yourself to go to the dentist regularly, get health checks, get your eyes tested. All good habits to build.

    • defaz on 26/10/2022 - 22:53

      Who did you go with? Did you go with extras too? or just bare bones for finance purpose at first?

      • victinini on 27/10/2022 - 20:02

        I went all the way, since the difference was a few hundred dollars a year.

    • avoidfullprice on 27/10/2022 - 08:00

      Incentivising yourself to go to the dentist regularly, get health checks, get your eyes tested. All good habits to build.

      Which are NOT covered by hospital cover, the cover that avoids MLS

  • Trance N Dance on 27/10/2022 - 06:33

    If you don't have a need for any of the extras other than dental just get hospital cover. Consider figuring out what the extra cost of extras cover is, throwing it into a bank account and basically self-insure if dental check ups are all you do each year.

    (Not expert advice, blah blah blah, please don't sue me).

  • avoidfullprice on 27/10/2022 - 08:07
    +1

    Considering shopping around for a basic hospital + extra covers that offer free months, before july hit. This will firstly make you eligible for the 3 year permitted days without cover to avoid LHC increases, secondly just seen if it is worthwhile for you. You don’t have to stay with them for a whole year. Maybe try for a month or two.

    Insurance in general is betting against an unforeseen circumstance. Bang for buck varies.

  • Hshdhshsb on 29/12/2022 - 17:36

    Invest into the stock market. Just invest every month and so t touch it. Your unlikely to need the money for health care until you are 45-50+ by which time you will be loaded from your savings.
    Otherwise you will probably pay tens of thousands and get nothing for it.

  • Hshdhshsb on 29/12/2022 - 17:37

    Health insurance at 18 is for people who have money to burn.

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