Cheapest Hospital Cover to Avoid Medicare Levy Surcharge?

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  CyberMurning on 04/12/2023 - 10:29

  +1

  not many people know this: Gaps in cover and Days of Absence thank me later :)
  https://www.privatehealth.gov.au/health_insurance/surcharges…

  Permitted days without hospital cover
  If you have held hospital cover on or after your Lifetime Health Cover (LHC) base day, then you can access the following 'permitted days without hospital cover'. During these periods, you do not have an active hospital policy, but your loading does not increase.

  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'.
  If you use up your Days of Absence - that is, you have a total gap period of 1095 or more days - you will pay a LHC loading on rejoining hospital cover. The loading is an additional 2% on top of any previous loading, and will increase by 2% for every year after the 1094 days without cover.

  Suspension of membership - if you apply to your health insurer to suspend your hospital cover for a short period (for example, to travel overseas for a holiday), and the insurer agrees, this period of suspension is not counted towards your 1094 Days of Absence. Suspension terms and conditions vary from insurer to insurer, so check with your insurer as to whether you can suspend your policy.

  Going overseas - if you cancel your hospital insurance after your Lifetime Health Cover base day to go overseas for at least one continuous year, the days you spend outside of Australia are not counted towards the 1094 Days of Absence. You can return to Australia for periods of up to 90 consecutive days, per visit, and be considered to be overseas. Any periods of 90 days or more which you spend in Australia during this time will be deducted from the 1094 Days of Absence.

  • 

    donny donny on 04/12/2023 - 11:34

    thanks mate, how do we advise this? to the insurer directly?

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  Frizzlerz on 04/12/2023 - 11:31

  Finder and choice both have write ups on "cheapest"
  https://www.choice.com.au/money/insurance/health/articles/ch…
  https://www.finder.com.au/health-insurance/cheap-health-insu…

  If you and your wife have a combined income over the threshold you will both pay the surcharge against your individual income

  Depending on your income it can be better to just pay the surcharge vs get the cheapest as the cheapest doesn't really offer anything

  I had the same question last year and researched a bit
  Basic/Basic plus = $20.45 per week each - pretty much just an ambulance cover with no cover for other services
  Bronze/Bronze plus = $25 per week each - ambulance cover plus a selection of 20 other basic covers, most of the insurance companies include the same 20 at the bronze level

  Worth weighing up if you are willing to pay the extra $5 per week to actually get something out of the health insurance vs just avoid to MLS

  • 

    geekcohen on 04/12/2023 - 11:34

    +3

    Worth weighing up if you are willing to pay the extra $5 per week to actually get something out of the health insurance vs just avoid to MLS

    This!

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  geekcohen on 04/12/2023 - 11:34

  Do I need to buy husband and wife or just the person with the highest income?

  It has to be for both is what our accountant told my wife and I.

  ---

  My wife and I did the sums and it was no cheaper than paying the Medicare Levy for our circumstances (everyone's is obviously different). Yes, we got some of the extras (dental, optical etc) but it was still of no value. We do live in a regional area, so the closest private hospital is 45 mins drive.

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  donny donny on 04/12/2023 - 11:35

  if you are fairly healthy and dont need the coverage, take a look at HCi, they are the cheapest when i looked into it 6 months ago.

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  Frozensage on 16/12/2023 - 23:40

  Isn’t it worth getting just so u save on the loading incase u ever needed to get it later in life?