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Medicare Levy vs Private Insurance


CaptainR

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Has anyone and good advice for private medical insurance providers in lieu of paying the Medicare levy? Is the Medicare deducted automatically and then reclaimed at the end of the financial year or paid as a penalty at the end of the financial year?

 

Looking at the possibility of insurance for my the whole family (wife and 2 young kids)

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Has anyone and good advice for private medical insurance providers in lieu of paying the Medicare levy? Is the Medicare deducted automatically and then reclaimed at the end of the financial year or paid as a penalty at the end of the financial year?

 

Looking at the possibility of insurance for my the whole family (wife and 2 young kids)

 

You cannot completely avoid the Medicare levy, just the second levy for people in certain income brackets. If you are in that income bracket, then it would be an extra charge at the end of the year when you do your tax return, if you don't show that you had the insurance.

 

Age loading very important consideration, health insurance premiums will be much higher if they are loaded for age - as you would expect a 70 year old deciding to take out private health cover for the first time may expect to get a lot of use out of it versus a 23 year old. To avoid the age loading, the new migrant aged over 30 needs to take out cover in the first 12 months.

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If you are over the income for the extra levy you are as well paying out for the private health insurance as it works out around the same amount and if you have the insurance at least you can have the benefits!

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Thanks for the replies, we are in the higher brackets and need to pay the extra levy. Any recommendations for providers ?
We are with Medibank, not really claimed for much but I got glasses last year and OH been getting some dental treatment, still having to pay $500 but I think it is well over $2000 the full price
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  • 4 weeks later...

I was hit by the MLS this year for the first time. I had full cover with BUPA but as I am overseas visitor (on a 457 visa) my health insurance does not count towards the MLS. You need to take out a separate insurance which does not provide you with any cover but does allow you to avoid the Medicare Levy Surcharge. The approximate monthly costs are:

 

BUPA - $72

NIB - $72

Medibank - $85

 

Please don't be fooled into thinking that your overseas visitor health insurance will cover you. I was and ended up with a nasty surprise tax bill at the end of the year.

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Thanks Skani.

 

Maybe it's different in NSW but here you need two types of cover. One which covers you for medical emergencies and one which stops you paying the MLS which covers you for nothing. You have to have overseas visitors cover and not a cover for residents. The website you've linked to, takes me to residents cover even when I click 'overseas visitor'.

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The downside I found with Bupa is that under their extras policies "major" dental is not paid out as a percentage of fee but as a "set benefit" instead....this is usually lower.

 

For example under my 85% Medibank policy if I get a $1000 "major" dental bill (e.g. crown) medibank will pay 85% (i.e. $850 out of the $1000).

 

Under "set benefits" you will often only get something around $500-$600 (guessing from past experience with other providers).

 

Bupa does pay 100% (unlimited) for general dental though under some/all policies I think where my Medibank 85% policy only pays 85% (unlimited).

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