Insurance premium price hikes – that time of year again

healthcare medical, Insurance for your health concept

No shock here at Power2, Private Health companies (and insurance and other professional services as such) are sending their annual:

“Dear valued client,

Your policy is changing (prices are going up).

From the CEO of the company personally (I swear)”

Obviously inflation is a part of the economy – but that doesn’t mean you should always grin and bear it when it comes to services upping their prices. Shop around, get quotes, discover if you are entitled to loyalty rewards, discuss options etc. etc.

Private health in particular is seeing some massive changes in 2019. Not only this but there is evidence that millennials see private health as the bottom of the priority list for how they spend their money (at least ten spots below smashed avo on toast). So – just like getting the best deals from your banks, now’s a better time than ever to shop around for the best deal with your private health provider.

The department of health give more information on changes here.

Who will benefit?

  • The new product tiers will give consumers greater certainty about the services covered by each type of hospital treatment product.
  • The changes will make it easier to shop around and compare different hospital treatment products to find one that meets individual needs.
  • The changes will particularly benefit women with breast cancer, as all medically necessary breast surgery will be included in all Bronze tier hospital treatment products and above. Women will also have access to gynaecology in these products.

Why is this important?

  • Private health insurance is an important issue to many Australians, with 55 per cent of the population covered by some form of private health insurance.
  • The Government’s consultations revealed that consumers find hospital insurance products complex and difficult to understand.
  • Consumers face difficulty in trying to compare private hospital insurance products. They also find it difficult to understand what services different products do, and do not, cover.

Tips from Power2

Talk to your financial planner for options. At Power2 we have a solution and can provide an obligation-free quote to compare.

Power2 Brisbane Pty Ltd is an Authorised Referrer of myOwn health insurance.

MyOwn health insurance is backed by GMHBA (an Australian not-for-profit health insurer with more than 80 years’ experience) and AIA’s Vitality health and wellbeing rewards program.  MyOwn provides a range of options from basic private hospital to top level hospital and extras.

 

From a Tax Point of View

You may also have to pay the Medicare levy surcharge (MLS) (in addition to the standard Medicare Levy) if you don’t have an appropriate level of private patient hospital cover.

MLS is up to 1.5% depending on your circumstances.

Depending on your circumstances, the Medicare levy, the MLS or variations to your private health insurance rebate may impact the refund you receive or the tax you owe.

Appropriate level of private patient hospital cover – We have summarised to make it easy to understand

  • Private patient hospital cover is provided by registered health insurers for hospital treatment provided in an Australian hospital or day hospital. You must arrange and pay for your cover directly with the insurer.
  • For singles, an appropriate level of cover must have an excess of $500 or less. Couples or families must have an excess of $1,000 or less.
  • If your private health insurance policy does not provide an appropriate level of private patient hospital cover, and your income for MLS purposes is above a certain threshold, you may have to pay the MLS.
  • General cover, commonly known as ‘extras’, is not private patient hospital cover. It covers items such as optical, dental, physiotherapy or chiropractic treatment.
  • Travel insurance is not private patient hospital cover for the purposes of the MLS. Similarly, private patient hospital cover does not include cover provided by an overseas fund.
We are simply an Authorised Referrer of myOwn health insurance and this is not a recommendation.  We do not provide warranty on the accuracy or suitability for your individual needs of the information and health insurance options provided by myOwn health insurance. This should not be deemed as a financial and/or other advice.  Power2 may receive a referral fee from myOwn health insurance.