Health Insurance just to avoid Medicare Levy (Tax) FY 19/20

Has anyone got recommendations for the cheapest provider for health insurance this financial year (19/20) just to avoid getting stung by the Medicare Levy Surcharge?


  • +1 vote

    If you're just getting insurance for the sole purpose of avoiding MLS, it's going to be more expensive than MLS (unless you have a ridiculously high income) and you won't get any benefit out of your cover so just pay the MLS. I'd only get hospital cover if it's worthwhile.


      This is not true for me unfortunately.

    • +2 votes

      Not really. 1% MLS on the lowest threshold is $900. You can pick up a basic hospital cover for $850 saving you $50 bucks

      OP - i got AHM this FY. They were cheaper than Bupa and have Flybuys signup bonus running at the moment. Definitely a ‘junk’ policy, but I can’t remember the last time I had to go to hospital…


        $850 is quite cheap, hif costs $960 for basic plus which is what I have. Might have to recompare prices next time it's up for renewal

        Edit: Checked AHM for me is $917.05 on starter basic, I guess it's different for everyone.

    • +6 votes

      Mate of mine spent like months trying to work this out a while back.

      worked out that generally speaking if you earn $90,001-$125,000 the 1% MLS is usually on par with basic hospital cover pricing for the year or the savings are minimal.
      over $125,000 when the 1.25% and 1.5% MLS kick in it is almost always better value to have the cover.

      he had this awesome spreadsheet etc and compared like 80 different private covers etc .. might see if i can get him to send it to me so i can share.


    From this year they got rid of the junk cover so you’ll be paying more for health insurance than the MLS


    Make sure you have appropriate private hospital cover with an excess of $750 or less otherwise it won’t count:

    • +1 vote

      As per that link…. Appropriate level of "private patient" hospital.

      Public Hospital cover is sufficient if you have private coverage e.g Hospital treatment, including accommodation as a private patient in a shared room in a public hospital

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