Private Health Insurance Under 30's discount

jwsc on 20/03/2019 - 14:22

Hi,

I'm looking into getting private health insurance.
I was originally planning to wait until I either hit $90K or turn 30 to get it, which ever came first.
But, I recently saw the new about the 10% discount for people under 30.
Though it seems it is an optional thing, so not all insurance companies have it, and it does not apply to all of their policies.

I am also unable to find a comparison site that has this discount calculated into their calculations yet.
So I was hoping people could share some of the funds they know that do this and which policies they do it for?

Thanks in advance

Financial Health Insurance Insurance

Comments

  • Cliche Guevara on 20/03/2019 - 14:42
    +3

    From someone who actually does have PHI, don't bother. Open a savings account and deposit ~$2000 py. Use that for all your health/medical needs. By the time you need to cover big ticket items in the latter stages of life you'll have plenty saved. For all the rest there's the public health system and Medicare.

    • Tech5 on 20/03/2019 - 14:46

      It depends. If you earn over a certain amount and you do not have hospital cover at all, the ATO will hit you with an additional levy. I agree regarding extras though

      • Cliche Guevara on 20/03/2019 - 14:49
        +1

        Yup, that's the Medicare levy and it's still cheaper than PHI. Any PHI that would work out equal or less than the Medicare levy is "junk" and not worth anything.

        • Tech5 on 20/03/2019 - 15:01
          +1

          Not true, it is the medicare surcharge. This is in addition to the medicare levy. I save over 3 grand a year by having a junk hospital policy not worth anything.

          Edit. It is an extra 1.5% of your total income if you earn over 140,001 as a single income threshold. 1% if it is over 90,000

          • Cliche Guevara on 20/03/2019 - 15:17

            @Tech5: Ok, I stand corrected on the terminology. You are in the minority with your high income. You could actually afford a full PHI policy, but choose not to. And for those just above the $90K limit the ~$1k surcharge is close to the cost of a "junk" policy. By the time you are earning enough for the MLS to hit hard you can afford any PHI policy anyway…

            • Seraphin7 on 20/03/2019 - 16:05

              @Cliche Guevara:

              By the time you are earning enough for the MLS to hit hard you can afford any PHI policy anyway

              Or you could just choose to self-insure/make full use of the public system (that as a high income earner you would already be making a significant contribution towards), and make use of your funds for other purposes including paying down debt, consumption and investment. The attitude that someone on an income above some arbitrary threshold "can afford it anyway" is just "soak the rich" socialist-populism.

              • Cliche Guevara on 20/03/2019 - 16:41

                @Seraphin7: Yes (see my first post…), but if you see what Tech5 says (avoiding $3k MLS), even if he took out a non-junk PHI policy it would be less than his MLS (he just chooses a "junk" policy to pay even less). That's what I was referring to by saying the wealthy can afford PHI. The rich actually "save" money by taking out PHI. For the wealthy taking out PHI is effectively "tax-minimization". As usual it's the bulk of the middle-class families that get hit hardest by PHI.

                • Tech5 on 20/03/2019 - 16:47

                  @Cliche Guevara: At 90,000 you are paying an additional 900 a year, and it goes up from there. The lowest priced hospital policy is around 500 a year

                  • spiff on 20/03/2019 - 16:52

                    @Tech5: Exactly. So not only are you saving yourself $400, you're getting "free" hospital cover as well (albeit very basic cover). Not sure what the case is for self insuring if you earn over $90k is.

                  • Cliche Guevara on 20/03/2019 - 19:09

                    @Tech5: Look, I don't think we are in disagreement here. The OP is under 30 and not earning $90k. I don't think he should get PHI. Do you disagree? If you do, let him know which policy you have and let him know the benefits.

    • GG57 on 20/03/2019 - 14:52

      There are a lot of us over 30 that only have it because of the tax implications.
      Even then, there has been plenty of recent complaints from PHI providers about hospitals 'scamming' the system for private patients who agree to charge their PHI provider but be treated as a public patient. Diddums.

  • Gunther on 20/03/2019 - 15:09
    +1

    Don't rush, its a marketing gimmick. Just shop around when "you" are ready for health insurance.

    • spiff on 20/03/2019 - 16:53

      It's not just a gimmick. It has real tax consequences if you earn over $90k.

  • jwsc on 21/03/2019 - 08:30

    Hi,
    Didn't mean to start a whole debate about PHI.
    Just wanted to make a useful list for those who either do make $90K or are on the trajectory to making $90k.
    So I'll just start the list.

    Does have a discount:
    Frank - only for 2 specific combined policies.
    Medibank

    Doesn't have a discount:
    GMHBA
    HCF

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