Some Australians may discount the idea of private health insurance (PHI) because they think its services will be too costly. However, the Australian government encourages individuals to seek out private insurance as a supplement to Medicare by offering a significant rebate on premiums offered under some private funds.
What is the government rebate?
The Australian Government will refund a certain amount of private health insurance premiums for individuals who are eligible for Medicare. In essence, this means you will be reimbursed for a significant portion of what you pay for your private coverage.
How much will I be reimbursed?
The government decides how much to reimburse you for your private health fund based on your annual income. If there are several family members on one plan, the government will base this figure on the annual earnings of the oldest member of the family.
Currently, the government offers three tiers of rebate. Single folks under age 65 who earn $88,000 or less will receive a 30 per cent rebate. For those between 65 and 69, the rebate amount is 35 per cent, and it raises to 40 per cent for individuals 70 and older.
This is the lowest tier, and the rebate amounts decline for those with higher annual incomes, as it’s assumed these individuals will be able to pay more out of pocket.
Choosing the right fund
It’s important to know that not all private health funds are eligible for a government rebate. This is an important factor to consider when searching for the right private health insurance fund for you and your family.
Using a comparison website will allow you to know whether your fund will be eligible for a rebate, saving you money in the long run.
DT: Paying for private health insurance doesn’t have to cost and arm and a leg. The Australian government offers rebates on certain plans.