| Publication: | The Age |
|---|---|
| Date: | 26 November 2008 |
| Section: | Money |
Changes to the Medicare surcharge and tighter household budgets mean some people will be reviewing the ever-increasing cost of their private health insurance.
Under the Medicare surcharge, people on higher incomes who don't take out private health insurance are taxed an extra 1 per cent.
Legislation passed last month lifted the threshold from $50,000 to $70,000 for single people and from $100,000 to $140,000 for couples.
By the Government's estimate, that means about 250,000 taxpayers will no longer have to pay the surcharge and some people are expected to drop out - prompting dire warnings from the industry of higher premiums for those left behind.
The exodus may or may not eventuate - especially as there's no change to the rule that says people aged 30 or older have to pay an extra 2 per cent in premiums for every year they delay joining a fund - but analysts say it's as good a time as any to consider whether you're getting value for money...
Analysts say consumers should be choosing health insurance that fits their risk profile - ensuring they have the cover they need but keeping the price down by not paying for cover they don't need. They can also reduce the cost by ticking the box for higher excesses and co-payments.
