Health Insurance:Lifetime Health Cover Loading Deadline

[Gbye grey sky]

Hi all. Just got a Dept of Health letter telling me that unless I take out private health insurance (hospital cover) by 1 July then after that I will pay a loading of 2% for every year I am over 30 (in effect a 50% loading as I am 55).

 

I have no income currently (living on savings) though may do some part time work in the future, certainly under the tax threshold. Did an initial search and found premiums were roughly $100 per month wothout the loading. My 53 year old wife is a citizen and she would have to pay the loading so to cover both of us it would be $250 per month $3000pa. She is working part time earning around $20,000pa.

 

Looking at a sample policy it seems all this would entitle us to is access to a private hospital and wait times for most treatments up to 2 months plus I would have to pay a $500 excess which dies not sound impressive.

 

We have never had private health cover in the UK. I haven't been in hospital since my appendix was removed 40 years ago. My wife had a knee op a few years ago but paid to go private. My instinct says that this is not something I should be considering as the cost is high for us and the cover is very limited (knee ops not covered for example).

 

The letter says 13.36 million Australians have private health insurance (a large proportion of the population) Am I missing anything? Do most Poms in Oz take out Lifetime Health (Hospital) Cover?

[Guest]

We take it out as a family for Bupa's highest level, but that is because we will be wanting maternity covered in the future. In one way you are in a good position as you are basically able to get private health 25 years later than most without having to pay a penalty. So from one point of view it could be a good deal. Saying that it's hard to say it is ever worth it until later...

 

Have you compared via http://www.privatehealth.gov.au/dynamic/compare.aspx ? very good website. Also worth calling them up and seeing if you can drop/add what you want to be covered for to make it more affordable and make a decision from there. Should be able to lower excess too.

 

Also due to income you will get a good level rebate too:

 

http://www.privatehealth.gov.au/healthinsurance/incentivessurcharges/insurancerebate.htm

[Suzukiscottie]

You would make a bit of a saving at tax time because if you have your private cover, you won't then need to pay the Medicare levy. So bear that in mind too.

 

Watch out what isn't covered though; it might surprise you. We've got the highest level family cover with GU Health, and there is still plenty that isn't covered, that we have found to our cost.

 

 

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[Parley]

I have just dropped mine after having it probably thirty years. But the annual bill came this year and $3200 so I said enough's enough and haven't paid.

I just took out Ambulance cover and that is it for me at the moment.

 

It has been going up over 5% every year and I have never needed to go to hospital but do use some extras but not worth the premium.

 

I do have some doubts though in that I'm too now over 50 and the risk is that as you age there is more likelihood you will need to go to hospital.

 

If you are never going to be a high income earner again then I wouldn't worry about the penalties related to tax.

[Parley]

You would make a bit of a saving at tax time because if you have your private cover, you won't then need to pay the Medicare levy. So bear that in mind too.

 

Watch out what isn't covered though; it might surprise you. We've got the highest level family cover with GU Health, and there is still plenty that isn't covered, that we have found to our cost.

 

 

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That isn't true. Every tax payer pays the medicare levy.

[NicF]

You would make a bit of a saving at tax time because if you have your private cover, you won't then need to pay the Medicare levy. So bear that in mind too.

 

Watch out what isn't covered though; it might surprise you. We've got the highest level family cover with GU Health, and there is still plenty that isn't covered, that we have found to our cost.

 

 

Sent from my iPhone using Tapatalk

 

There's only an extra levy to pay if you are earning something like $180,000 a year for a family. If you are not earning this, which the OP is not, there is no tax saving.

 

OP, if your wife has been out of the country for a long time you can get her exempt from the loading as well. You just need to get a letter from immigration showing when she was out of the country, although I can't remember what it is called right now. We did this for my OH when we moved over so that he was exempt from the loading as well. He was in his late 40s when we moved and had been living in the UK for 13 years.

 

We did take out hospital cover to start with but decided after a while to cancel it. We figured that we didn't need it to save on tax and would struggle to pay any gap if we had any procedures so didn't think it was worth it. If anything does happen we will either have to manage on the public system or find the money to pay to go private.

[Guest]

That isn't true. Every tax payer pays the medicare levy.

 

Think they mean the surcharge ...

[akiralx]

Think they mean the surcharge ...

 

Yes, which the OP wouldn't be paying as income too low. We (mid/late 40s) don't have medical cover - I refuse to pay the absurd loading. I just use the public health system.

[Bungo]

Hi all. Just got a Dept of Health letter telling me that unless I take out private health insurance (hospital cover) by 1 July then after that I will pay a loading of 2% for every year I am over 30 (in effect a 50% loading as I am 55).

 

I have no income currently (living on savings) though may do some part time work in the future, certainly under the tax threshold. Did an initial search and found premiums were roughly $100 per month wothout the loading. My 53 year old wife is a citizen and she would have to pay the loading so to cover both of us it would be $250 per month $3000pa. She is working part time earning around $20,000pa.

 

Looking at a sample policy it seems all this would entitle us to is access to a private hospital and wait times for most treatments up to 2 months plus I would have to pay a $500 excess which dies not sound impressive.

 

We have never had private health cover in the UK. I haven't been in hospital since my appendix was removed 40 years ago. My wife had a knee op a few years ago but paid to go private. My instinct says that this is not something I should be considering as the cost is high for us and the cover is very limited (knee ops not covered for example).

 

The letter says 13.36 million Australians have private health insurance (a large proportion of the population) Am I missing anything? Do most Poms in Oz take out Lifetime Health (Hospital) Cover?

 

I do not believe that 13m of Australians have private health insurance to be perfectly honest.

 

We had it but only because it was cheaper than the medicare surcharge. As far as I could ever tell, private health insurance in Australia is completely useless and generally will leave you more out of pocket for having it than for not having it. I used to warn Mr Bungo on a regular basis that if I ever have an accident and am brought to the emergency room that he should never, ever admit to having private health insurance! I guess if something serious came up it could be a blessing, but like you we have thus far been blessed with good health and rarely see doctors.

 

I have always have private health insurance in UK because firstly employers have always paid for it but also it does what it says on the tin and does not leave you worse off.

[Quoll]

We had it for many years and I was most certainly glad of it a few times - waiting 18 months to get my gall bladder out at the time was a definitely unappealing prospect! However I think, when we return, we will probably give it a miss as premiums will be around the $3-4kpa and when you're not earning that can become pretty onerous. If I was earning I probably would take it out again but otherwise I think we will be self insuring or going with public.

[JockinTas]

We had it for many years and I was most certainly glad of it a few times - waiting 18 months to get my gall bladder out at the time was a definitely unappealing prospect! However I think, when we return, we will probably give it a miss as premiums will be around the $3-4kpa and when you're not earning that can become pretty onerous. If I was earning I probably would take it out again but otherwise I think we will be self insuring or going with public.

 

Quoll, I had a 6 week wait to have my gall bladder out without private health and that was in Sydney which surprised me. Went for years and years without private health and only now have pretty much the basics. Our experiences with public have been positive so far. In fact I think private health is a bit of a rip-off but that's just me. The majority of private health insurers wouldn't have it any other way.

[Gbye grey sky]

I do not believe that 13m of Australians have private health insurance to be perfectly honest.

 

We had it but only because it was cheaper than the medicare surcharge. As far as I could ever tell, private health insurance in Australia is completely useless and generally will leave you more out of pocket for having it than for not having it. I used to warn Mr Bungo on a regular basis that if I ever have an accident and am brought to the emergency room that he should never, ever admit to having private health insurance! I guess if something serious came up it could be a blessing, but like you we have thus far been blessed with good health and rarely see doctors.

 

I have always have private health insurance in UK because firstly employers have always paid for it but also it does what it says on the tin and does not leave you worse off.

 

I am suspecting that this number includes people who have 'extras' for dental etc or even including those who pay ambulance cover in which case it is a somewhat disingenuous statement from a government department. I would be surprised if they were outright lying.

 

Fortunately we don't need ambulance cover here as it is included in our rates bill.

[Keith and Linda]

Hi all. Just got a Dept of Health letter telling me that unless I take out private health insurance (hospital cover) by 1 July then after that I will pay a loading of 2% for every year I am over 30 (in effect a 50% loading as I am 55).

 

I have no income currently (living on savings) though may do some part time work in the future, certainly under the tax threshold. Did an initial search and found premiums were roughly $100 per month wothout the loading. My 53 year old wife is a citizen and she would have to pay the loading so to cover both of us it would be $250 per month $3000pa. She is working part time earning around $20,000pa.

 

Looking at a sample policy it seems all this would entitle us to is access to a private hospital and wait times for most treatments up to 2 months plus I would have to pay a $500 excess which dies not sound impressive.

 

We have never had private health cover in the UK. I haven't been in hospital since my appendix was removed 40 years ago. My wife had a knee op a few years ago but paid to go private. My instinct says that this is not something I should be considering as the cost is high for us and the cover is very limited (knee ops not covered for example).

 

The letter says 13.36 million Australians have private health insurance (a large proportion of the population) Am I missing anything? Do most Poms in Oz take out Lifetime Health (Hospital) Cover?

 

You (at your ages) will pay the lifetime health loading even if you take out private health/hospital, after 10 continuous years of cover the loading is removed. However I only thought they charged this if you took out private health? my loading is knocking on towards $100/month with about 1 more year to go

[Gbye grey sky]

You (at your ages) will pay the lifetime health loading even if you take out private health/hospital, after 10 continuous years of cover the loading is removed. However I only thought they charged this if you took out private health? my loading is knocking on towards $100/month with about 1 more year to go

 

Migrants are exempted from the loading if they take out private cover within 12 months of first registering for Medicare hence if I was going to start paying private insurance I need to start soon as after 1 July the cost would increase for me by 50%.

 

I have actually now been quoted around $60 per month for the most basic hospital cover package without the loading but I am struggling to identify what it is giving me as anything elective is not covered with this policy and anything else would be picked up through public healthcare as far as I can see.

[Keith and Linda]

Migrants are exempted from the loading if they take out private cover within 12 months of first registering for Medicare hence if I was going to start paying private insurance I need to start soon as after 1 July the cost would increase for me by 50%.

 

I have actually now been quoted around $60 per month for the most basic hospital cover package without the loading but I am struggling to identify what it is giving me as anything elective is not covered with this policy and anything else would be picked up through public healthcare as far as I can see.

 

I would have to pay the 1% medicare Levi if did not take out private cover, this 1% goes a long way in covering the premiums so no win no lose really for me at present. But I will be stopping it all when I come to semi retire maybe next year, as like you I can see no benefit in having it.

[robfromdublin]

I see no benefit in it (BUPA corporate cover here). I had a colonoscopy last year and the cost going private without cover was $800. I got $300 back on premiums of about $150 a month. My wife wants to keep basic cover for peace of mind and I'm happy enough with that, but we had our children through the public system and it is excellent in Queensland.

 

I would pay no mind to the loading to be honest. Missing a year's premiums more than outweighs the 2% extra you'll pay into the future, especially as they drop the loading after 10 years continuous payments.

[Quoll]

Quoll, I had a 6 week wait to have my gall bladder out without private health and that was in Sydney which surprised me. Went for years and years without private health and only now have pretty much the basics. Our experiences with public have been positive so far. In fact I think private health is a bit of a rip-off but that's just me. The majority of private health insurers wouldn't have it any other way.

Canberra does have a poor record for elective surgery - I'm assuming it has got better over the years but it most definitely was 18 months with my surgeon for public, it was 6 weeks for private! I had another op in 10 days that I think I would still be waiting for a public spot - and it was necessary, not just a whim. I hate to think how long a knee or hip replacement would be. It is a rip off but the couple of ops I've had have been well worth it.

[Keith and Linda]

I see no benefit in it (BUPA corporate cover here). I had a colonoscopy last year and the cost going private without cover was $800. I got $300 back on premiums of about $150 a month. My wife wants to keep basic cover for peace of mind and I'm happy enough with that, but we had our children through the public system and it is excellent in Queensland.

 

I would pay no mind to the loading to be honest. Missing a year's premiums more than outweighs the 2% extra you'll pay into the future, especially as they drop the loading after 10 years continuous payments.

 

My colonoscopies, except for the clear-out formula, cost me nothing, a nice sandwich, tea and biscuits afterwards too.

I have some friends that do not have private medical that actually have a separate savings account and place the equivalent premium payment into that, maybe a good idea if started when one is young so can build a nice sum over the years.

[Parley]

Canberra does have a poor record for elective surgery - I'm assuming it has got better over the years but it most definitely was 18 months with my surgeon for public, it was 6 weeks for private! I had another op in 10 days that I think I would still be waiting for a public spot - and it was necessary, not just a whim. I hate to think how long a knee or hip replacement would be. It is a rip off but the couple of ops I've had have been well worth it.

 

I like the idea of self insuring though. If you put your $3K premium in a savings account each year after 5 years you have $15K saved and may never need to have any operation.

@Quoll if you self insure and say I'll pay for the cost myself, can you still get the operation in 6 weeks.

I presume you should be able to.

[Keith and Linda]

I like the idea of self insuring though. If you put your $3K premium in a savings account each year after 5 years you have $15K saved and may never need to have any operation.

@Quoll if you self insure and say I'll pay for the cost myself, can you still get the operation in 6 weeks.

I presume you should be able to.

 

Just have to hope that you and your partner do not need an operations within that 5 year period! I think that plan is better for the long term starting when young to have a better nest egg for when you are more likely to need medical assistance at an older age.

[JockinTas]

Just have to hope that you and your partner do not need an operations within that 5 year period! I think that plan is better for the long term starting when young to have a better nest egg for when you are more likely to need medical assistance at an older age.

 

That's what we have done.

 

OH has been as fit as a fiddle all his life until the last 3 years so we have dipped into our "emergency health account" a couple of times. Whether or not it is cheaper than having private health insurance I don't know but OH has a thing about private health. Old socialist that he is.

[Gbye grey sky]

That's what we have done.

 

OH has been as fit as a fiddle all his life until the last 3 years so we have dipped into our "emergency health account" a couple of times. Whether or not it is cheaper than having private health insurance I don't know but OH has a thing about private health. Old socialist that he is.

 

The bottom line is that insurance companies have large overheads (buildings, wages, commissions, marketing etc) and also make large profits so they rely on the fact that the vast majority of customers will pay in many times more than they receive back. They are bookies (or some might say a type of hedge fund) really, though when you place a bet with a bookie you risk losing the stake, when you place a bet insurance policy with an insurer you risk not winning the bet (which you don't want to win anyway ironically). The odds are stacked either way.

[Keith and Linda]

That's what we have done.

 

OH has been as fit as a fiddle all his life until the last 3 years so we have dipped into our "emergency health account" a couple of times. Whether or not it is cheaper than having private health insurance I don't know but OH has a thing about private health. Old socialist that he is.

 

I do wonder that if you have insurance that one would not hesitate in using it, whereas in dipping into your own fund one may think more than once before doing so, or in other words delay medical intervention which could end up costing you more.

[Gbye grey sky]

I do wonder that if you have insurance that one would not hesitate in using it, whereas in dipping into your own fund one may think more than once before doing so, or in other words delay medical intervention which could end up costing you more.

 

That is a fair point though most policies require the patient to stump up a sizeable excess so that would still act as a disincentive.

 

To give an analogy. This morning a stone from a passing lorry chipped my windscreen. It may or may not be repairable. I am allowed one windscreen claim per year so when I claimed I was, rightly, asked if I wanted to use up my one claim or preserve it. Even having insurance can make you seriously consider putting off remedial work.

[Keith and Linda]

The bottom line is that insurance companies have large overheads (buildings, wages, commissions, marketing etc) and also make large profits so they rely on the fact that the vast majority of customers will pay in many times more than they receive back. They are bookies (or some might say a type of hedge fund) really, though when you place a bet with a bookie you risk losing the stake, when you place a bet insurance policy with an insurer you risk not winning the bet (which you don't want to win anyway ironically). The odds are stacked either way.

 

The same, I suppose, applies to all types of insurance though it does seem a little strange that we have in general no qualms about paying for car, home, contents,holiday insurances and the like but we baulk at health insurance! we got spoilt by the NHS system do you think?