Should You Get a Private Health Insurance?

As Australian residents, we already have a public health insurance – Medicare, which provides you with free or subsidised access to a variety of health care options. However, what about private health insurance? Should you get an additional one, or is your money better spent elsewhere?

The advantages of getting a private health insurance are quite numerous: those with private health insurance have more freedom in choosing preferred doctors and specialists, quicker access (read: shorter waiting time) for elective surgeries, and access to services that are not covered by Medicare such as dental, optical, physiotherapy, and chiropractor.

Private health insurance can also be used to gain some financial benefits. If you earn more than $90,000 per year, or if your family earns more than $180,000, taking a private health insurance will exempt you from the Medical Levy Surcharge, which ranges from 1 to 1.5 per cent.

Medical levy surcharge rate, 2016-2017 and 2017-2018. Source: ATO

For those aged 31 years old and under, owning private health insurance would also avoid them from paying extra lifetime health cover loading. Taking private health insurance after the age of 31 would render one liable for extra two per cent surcharge for every year delay.

It is best to consider if these advantages suit your financial circumstances. For more information, read up The Conversation‘s and CHOICE‘s articles on this subject. You can also take a quiz to see if you really need a private health insurance.

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