• The 30% Rebate
• Calculate Your Private Health Insurance Rebate
• Lifetime Health Cover
• Medicare Levy Surcharge

The 30% Rebate

The Private Healthcare Insurance Rebate provides a minimum 30% reduction in the premium cost of Private Healthcare. It is a recognition by Government that Australians with Private Healthcare are making a substantial financial contribution not only to their own healthcare but also to Australia’s health system.
It also recognises the fact that it takes a lot of the pressure off the public system, especially public hospitals.

For every dollar you pay towards your private health insurance, the Federal Government will give you 30 cents back. You can claim this either as a deduction in premiums, as a direct payment from Medicare or in your tax return at the end of each financial year.

Changes to the 30% Rebate – Means Test

From 1 July 2012, the Government will, introduce three new ‘Private Health Insurance Incentives Tiers’ to income test the 30%rebate.

Note:
The thresholds increase annually, based on growth in Average Weekly  Ordinary Time Earnings (AWOTE). Single parents and couples (including de  facto  couples) are subject to the family tiers. For families with  children, the  thresholds are increased by $1,500 for each child after  the  first. Singles earning $84,000 or less and families earning $168,000  or less will continue to receive the existing 30, 35 and 40 per cent rebate,  depending on their age.

The Private Health Insurance Rebate is helping you to save!

If you are below te income threshold in teh above table, then you can still benefit as the 30% rebate scheme still apllies and means that for every dollar you pay, the government gives you 30 cents back. So if your annual private health insurance actually costs $1,000, you will receive $300 back from the Federal Government. Or, like most people, you can arrange for your fund to have this deducted from your premium and save upfront — meaning cover worth $1,000 only costs you $700.

Since 1 April 2005, the Private Health Insurance Rebate has increased from 30 percent to 35 percent for people aged from 65 to 69 years and to 40 percent for people aged 70 years and older. Older people taking out private health insurance for the first time are eligible for the higher rebate. Contributors to private health insurance and those joining for the first time who are under 65 years continue receiving the Federal Government’s 30 percent rebate on their private health insurance premiums.

Why is it important?

By making private health insurance more affordable for more Australians, the Federal Government’s rebate has helped balance Australia’s public and private health systems.

Before the Federal Government rebate, many people found it difficult to afford to stay covered and this increased the pressure on Medicare.

At the moment, over 12 million Australians have private hospital insurance, and 57.3% of all surgical procedures are performed by private hospitals, evidence that the Federal Government’s 30% rebate has made a huge contribution to the Australian health system.

Why does the idea work so well?

Because of the partnership between the two systems. If people leave private health insurance, the cost of providing private health insurance and public health care both rise.

Fewer people with private health insurance means costs are shared between a smaller pool of people, and therefore premiums increase, which means even fewer people can afford private health insurance. As a result more people have to rely on Medicare only, which increases demand for public hospital services, and costs Governments (and the taxpayer) more money.

In fact, it would cost the Federal Government more to allow private health insurance to diminish than to continue to support people who choose it. If private health insurance disappeared, the cost of providing public hospital treatment for the same number of patients would escalate dramatically.

In 2008–09, private hospitals in Australia performed procedures that Private Healthcare Australia estimates would have cost the public hospital system over $11 billion to carry out. The cost of supporting private health insurance through the 30% Federal Government rebate in 2008-09 was significantly less at $3.9 billion.

Does private health insurance favour older people and the benefits they need?

No. In fact, private health insurance funds often pay claims of $50,000 to $100,000 — sometimes even more — to patients aged under 30. Private health insurance is structured fairly, with benefits to suit all ages and all health needs.

The Federal Government’s Private Health Insurance Rebate encourages people to not only join private health insurance but also to remain insured. The rebate, together with reforms including Lifetime Health Cover and the Medicare Levy Surcharge have helped to redress the previous imbalances in the Australian health insurance system.

How do I get the Federal Government’s Private Health Insurance Rebate?

To receive your health insurance rebate you must be with a registered health fund.
You can claim the ‘discount’ 3 ways:

1. Ask your health fund to include it as a premium reduction (it automatically comes out of your premium payments). This is how most people get the rebate
2. Get a direct payment from the government through Medicare after paying your fund and presenting the receipt
3. Claim it on your tax return at the end of the financial year

Whichever way you choose to receive it, the Australian Government rebate on private health insurance is there to make private health cover more affordable for more Australians.

For further information on the rebate scheme, click here

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