Medicare Levy Surcharge or PHI

luko84 on 10/11/2022 - 12:06
Last edited 10/11/2022 - 12:29 by 1 other user

Hi Ozbargainers,

Do I apply for PHI or pay for Medicare Levy Surcharge?

I have a European background so I am not used to private medical. I earn way over the levy threshold, I think last Levy was around 2K, I am 38YO and potentially having a child next year.

Corporate PHI discount is 12% off and 6 weeks free when joining. Looks like the cheapest weekly couple rate is ~$9 while including pregnancy benefits is $90 (but I haven't reached properly so maybe this this the top tier).

Do I still pay residual Levy if I go PHI?

I remit to wisdom of the crowd.

Thank you!

Financial Medicare

Comments

  • MS Paint on 10/11/2022 - 12:07
    +6

    It's been at least 3 days since this was asked so I'll let this one slide.

  • Fergy1987 on 10/11/2022 - 12:12
    +10

    I hear Medibank Private is good.

    • Seraphin7 on 10/11/2022 - 12:18
      +2

      OP should look up contact details for some of their customers for personal recommendations.

      • Fergy1987 on 10/11/2022 - 12:21

        $1USD - thats the REAL bargain here. Someone should post it

      • 2jzzzz on 10/11/2022 - 15:11
        +4

        Medibank Public

    • Flying Ace on 10/11/2022 - 13:10
      +1

      Not so private anymore

  • netjock on 10/11/2022 - 12:26
    +3

    You actually need to figure out your surcharge. Say $2k.

    How much is insurance? $2.5k. Are you going to get $500 of benefit out of it? If so you might be better off just in case you get a pay bump and avoid the lifetime head cover loading.

  • OpticalCog on 10/11/2022 - 12:53
    +3

    FYI if you go private for pregnancy/labour/birth with top-level cover you'd still be looking at 12-15k out-of-pocket expenses. (There are obviously subjective benefits such as a few extra days in hospital post delivery, more flexible scheduling of appointments, etc.). Also, keep in mind that pregnancy cover usually has a 12month waiting period once you join.

    • donbot on 11/11/2022 - 13:18

      $12-15k out of pocket - what are you basing this on? I've done it twice now, and neither pregnancy (including one with complications involving a 10 day stay, including a stint in intensive care and just about every possible speciality doctor you could imagine) came close to $12-15k out of pocket.

      Yes, there was considerable out of pocket - but at a reasonable estimate, I'd expect these wouldn't amount to even $6k for either pregnancy - thats including all obstetrician costs after medicare rebate, anaethetist, all scans, tests, genetic testing not covered by medicare anyway, medication and vitamin supplements, Private ED costs throughout, etc.

  • Adredocto on 10/11/2022 - 14:06
    +2

    Where do you get $9 a week?

    • cheekymonkey on 11/11/2022 - 08:31

      that was my thought as well. maybe it's just ambulance cover?

  • freefall101 on 10/11/2022 - 15:36
    +1

    Medicare levy is 2%. Your income * 2% = the levy.

    You can get quotes out the wazoo on PHI. If quote is less than levy, get PHI. If not, do not get PHI.

    Generally going private isn't worth it anyway unless you want skip the queue on elective surgery or want to pick your own doctor for giving birth. It's why only old people and rich people having babies get it and why the government needs to dream up 500 different ways to encourage people to sign up to the worthless system.

    • loulou1 on 10/11/2022 - 17:24

      Medicare levy is not the same as Medicare levy surcharge. Having private health insurance will not exempt you from Medicare levy
      Medicare levy surcharge varies depending on income
      https://www.ato.gov.au/individuals/medicare-and-private-heal…

      • freefall101 on 10/11/2022 - 23:56

        Good point. So it’s income * Medicare levy surcharge.

        It still shouldn’t be difficult to figure out.

  • AustriaBargain on 10/11/2022 - 16:32
    +1

    Just browse through the medicare hack of someone roughly your same age and sex to see how much value you can get from PHI.

  • cheekymonkey on 11/11/2022 - 08:34
    +1

    As i've looked into it previously, your annual private HOSPITAL cover will cost you about $1800+ per annum. and most of the time, that cover is fairly useless. getting extras won't do anything to avoid the medicare surcharge.
    If you want cover for pregnancy, than that would be a personal choice as it's a topic that has 50/50 split amongst people.
    For the time being, I am happy to pay the surcharge as it's easier, rather then having a cover which will leave me with lot of out of pocket expenses anyway.

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