| Publication: | Adelaide Now |
|---|---|
| Date: | 17 May 2009 |
| Section: | Money |
Adelaide financial services firm Hood Sweeney says a person earning $125,000 would pay $1885 a year for Medibank Private's top singles cover after losing the rebate, but if they opted out their Medicare Levy Surcharge would be $1875.
It's worse for someone on $150,000 a year, with the premium the same but the surcharge rising to $2250 - making it more expensive to not have the insurance.
High-income couples face a similar predicament. Top cover for a couple earning a combined $245,000 costs $3772 a year and the surcharge is $3675.
If their combined income is $260,000, the surcharge jumps to $3900.
Article summary:
Despite the changes, the Government doesn't want people with private health cover to opt out for the public health system, so people must be reminded that private health care is also for securing medical and health services without having to be placed on an extensive waiting list in the public system.
The Budget proposal involves the insurance rebate being scaled back to 20 per cent for singles earning more than $75,000 a year and couples on more than $150,000, to 10 per cent for $90,000/$180,000, and zero for above $120,000/$240,000, and the Medicare Levy Surcharge for higher-income earners rising to 1.5 per cent.
The new system is yet to be passed by the Senate.
"People should consider carefully before opting out of private health funds. Contact the fund and see if there is the option to increase the excess payable and/or look at reducing ancillary benefits to reduce the premium.''
