Private Health Insurance Rebate

By Sandy Naidu | June 17, 2008

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).