Tax changes could hit medical funds

Article excerpt:

Will you dump your health insurance if there's no tax incentive to keep it? Can you think of better ways to spend the $1200 on average each member pays each year for private hospital and extras cover?

Forking out for the premium can seem such a waste of money if you're fit and healthy. But at least you have peace of mind. Since universal heath care was introduced in 1972, many Australians have seen it as a basic right. These people can pay upwards of $100 for a haircut, but expect to get their eyes tested free.

... David Miller, the founder of moneytime.com.au, which compares health funds, believes many consumers will not tear up their health insurance policies if the levy threshold changes. "I don't think people are going to be physically worse off,' Miller says. "But this is a great opportunity to have a look at your cover, ensure you're in the right fund, and work out which funds offer you the best value."

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