Since 1 April 2019, health insurers have been allowed to offer discounts on hospital cover of up to 10% to Aussies aged between 18 and 29. This discount lasts until you hit your 40s if you hold and maintain your hospital policy, or ensure you only switch to a policy that includes a retained discount.
Keen to find a hospital policy that includes the age-based discount? Try our free comparison service to find discounted cover in only minutes.
If you take out hospital cover before 1 July following your 31st birthday, you can avoid Lifetime Health Cover (LHC) loading. This is a loading added to hospital insurance premiums when you take out cover in the future. You’ll pay two per cent for every year you’re over 30 and not covered. At most, you could be hit with a 70% loading!
Taking out an appropriate level of hospital insurance can also help you avoid paying the Medicare Levy Surcharge (MLS). This is an additional tax – between 1% and 1.5% of your income – payable once you’re earning over $90,000 a year as an individual or $180,000 as a couple or family.
Then there’s the Australian Government Private Health Insurance rebate – a government initiative to help Aussies cover the cost of their health insurance premiums. The rebate is income tested, which means your eligibility to receive it depends on your income. For example, if you’re under 65, single and earn under $90,000, you would receive a rebate of 25.059%.
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