To reduce the burden on public health system, the federal government implemented two initiatives to encourage us to take up private health insurance. The first one is more like a fine that people earning above a certain level get charged if they don’t take up private health insurance. The second is the ‘rebates’. Every one (irrespective of their income levels) is eligible for these rebates. Even pensioners, students and children are all eligible for these rebates. The only criteria is that you need to take up private health insurance.

The rebate levels are:

* 30% off your premium for those aged 64 or under.
* 35% off your premium for those aged 65-69.
* 40% off your premium for those aged 70 or more.

You can claim these rebates in three ways: 1. Automatic reduction in premiums 2. Claim your rebate from Medicare - pay the full amount to your private health insurer and then take the receipt to your nearest medicare office and claim from there

3. Pay the full amount…Your private health insurer will send you a statement at the end of the financial year. You can claim the rebate money in your tax return.

I have opted for the automatic reduction in premiums…To me this looks like the best option - less paperwork, less hassles and right from the start you pay only the amount you need to pay (why pay more and then claim back when you can pay less from the start).

Related Posts:

• Private Health Insurance Rewards
  In March 2008 Government approved premium rises for health insurance. The insurers were asking for around 5.21% increase but the government negotiated it down...
• Private Health Insurance - How To Select The Right One
  Lately we have all been seeing a lot of advertisements in the media for iSelect. I was quite impressed with the service when I...
• Federal Budget 2008 And Families
  The federal budget 2008 has been received with mixed reaction...Here are the new rules/changes that affect the families....Read through and see how you are...
• Medicare Levy Surcharge
  Every Australian Resident Taxpayer pays a medicare levy. The levy is 1.5% of the taxable income. Medicare is a scheme which gives the Australian...

Topics: Insurance |

Comments

Name (required)

Mail (will not be published) (required)

Website

« The Best Day To Fill Your Tank Up | Home | Looking To Buy Prescription Glasses? »