Private Health Insurance to Avoid Medicare Levy

G-Unit on 22/11/2019 - 10:26

Hi all,

I've been reluctant to take out private health cover because I'm happy with the public system and feel the vast majority of it I won't end up using. However, now that I'm 32 (33 in May) and earning a decent income, I'm getting hit with some pretty steep MLS fees which I'd rather avoid.

Long story short, what is the best value hospital (if it comes with extras even better) cover that will see me avoid the medicare levy scheme? I'm looking for something really basic and low cost.

I also have a wife, a 3 year old and a 4 year old. My wife should be on a decent level of cover as she has a gene which places her at high risk for breast cancer. In the event she will require preventative mastectomy I've been told it's good to have cover for the surgery.

Appreciate any and all advice.

Financial Health Insurance Insurance

Comments

  • jp519 on 22/11/2019 - 10:55
    +4

    I'm no expert, but from my shopping about there isn't a huge difference between them and they are all limited in some way.

    Easiest way to look at it is the cost of MLS versus cost of the policy. Here is how I went about working it out for myself:

    • Work out how much your MLS would be.

    It is worked out on household income, not individual income (so include your spouse's income, if any), and includes fringe benefits etc..
    Say your household income is $200k, you pay 1% MLS. So $2k / year.

    • You now know how much you can spend on private health, and not be any worse off.

    $2k year = $166 / month.

    • Now you have a budget, go find an insurance policy.

    You need to do your research, and find something that ticks all your boxes. For me, I really just wanted dental and optical so I went with the bare minimum hospital + extras. If I'm in a serious accident and dying, I'm in the hands of the public system anyway. So it doesn't matter.

    I went with NIB, only because I work near their dentist and there is no gap on dental fees. After claiming dental I pay less than the MLS per year so I'm ahead.

    Different for you with kids - but really, just set your budget then do some shopping.

    • Bargain80 on 22/11/2019 - 11:11
      +4

      I think You only need hospital cover to avoid MLS.
      so for true comparison, compare the MLS with hospital cover only.

      • CyberMurning on 22/11/2019 - 11:15
        +1

        yes just need hospital

      • MassNerder3r on 22/11/2019 - 11:16
        +2

        Bargain80 speaks the truth

        The minimum of hospital cover needed

      • jp519 on 22/11/2019 - 11:29

        Yeah I agree, it just worked out as good value for me getting extras too. Will be different for everyone.

      • [Deactivated] on 22/11/2019 - 13:35

        Yeah, I just buy the junk insurance.

        Worth it. I bought the cheapest medibank one that came with extras included. It's under packaged cover rather than cover by type. It's more expensive to build the equivalent plan by itself.

  • His_Holiness on 22/11/2019 - 13:39

    www.privatehealth.gov.au

    This is the only true private health insurance comparison site.

    A 5 minute search for Victoria shows that Ahm Starter Basic is the cheapest if your sole purpose is to be exempt from the MLS.

    Your wife should get separate health insurance for her particular needs. If you're healthy and fine with the public system then there's no reason why you also need expensive health insurance.

  • G-Unit on 22/11/2019 - 14:52
    +1

    Thanks guys!

    Seeing as it's calculated based on household income, to avoid MLS do both my wife and I need to take out cover to avoid MLS? Will we need cover for the kids as well?

    Cheers,
    Gabe

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