There’s a government rebate you can claim to reduce your premiums. Provided you hold cover (either hospital or extras, in this case) and your annual taxable income is less than $140,000 as a single or $280,000 as a couple/family, you can claim this rebate through your tax return, or enjoy it as discounted premiums.
From the age of 41, your discount rate will begin to decline by two per cent every year until it reaches zero and is no longer applicable.
For example, say you took out a hospital policy at the age of 27 and received a six per cent health insurance discount. This discount will drop to four per cent when you turn 41 years old, a two per cent discount at 42, and will no longer apply once you turn 43.
If your insurer doesn’t offer age-based discount products, compare and find out which other funds will. Along with cover that suits your healthcare needs, a discount may help ensure you’re on the most cost-effective policy; now and into the future.
If your health fund offers the age-based discount on your policy, you may have automatically received the discount based on your age from 1 April 2019, or your age when you first took out health insurance (whichever is latest). However, please check with your health fund.
Some health funds may offer a retained age-based discount, which means your original discount will apply if you switch to an eligible policy. As such, be sure you confirm with the health fund whether you will receive a discount before you switch.
Any gap in cover means you may lose your discount. For example, if you move from a policy (with the age-based discount) and you’ve had a gap in cover before you move to another – before you turn 30 – you’ll receive the discount based on your current age.
If you and your partner are both eligible and have a couples or family policy that offers a discount, this discount will be calculated as an average of both your applicable discounts.
For example, if you have a two per cent discount and your partner has a six per cent discount, it will balance out to a four per cent discount off your couples or family policy premiums.