Private health insurance

Private health insurance

• an optimal insurance that people can choose to purchase in addition to Medicare, PHI contributes towards health services/costs not covered by Medicare

—> people pay premiums, fortnightly/monthly to have Private health cover

• 2 levels → hospital care → treatment/accomodation private hospital

• → extras

Advantages of PHI

• ppl can choose their doctor in and out of hospital

• Less waiting time for elective surgeries

• Private room in hospitals

Disadvantages of PHI

• premiums can be expensive

• Waiting times do apply → policies

• Often gap payments required to be paid by the patient

• Policies can be confusing

PHI incentives- reason for them

• Medicare can reduce the money its spending

• Less waiting times bcs ppl are using the private system

PHI incentives - PHI rebate

• PHI rebate → low income rangers get 25% of the premiums they have paid refunded each year

• 65% - higher rebate

PHI incentives - Lifetime health cover

• Those who join PHI after the age of 30 pay an additional 2% per yr on premiums

• Join at 40 - extra 20%

• Max loading is 70% - removed if ppl join 10 continuous yrs’

PHI incentives - Medicare levy surcharge

• additional 1-1.5% tax placed on high income earners who don’t have PHI

PHI incentives - Age based discount

• 1829 - 2% off premiums for every year under 30