Medicare Levy Changes
Surprise announcement by the government affecting health insurance
(Monday -
12/5/2008)
Surcharges may change
It been reported in the media over the weekend of 10/11 May that the Federal Government will be changing the laws around taxation and private health insurance in its latest budget.
Specifically, we understand that the Medicare Levy Surcharge will be modified. This is the additional 1% tax on top of the Medicare levy that applies to all Australians who don’t take out health insurance.
Singles and Families affected
In the past, this rate has been applied to singles who earn a taxable income over $50,000 and families who earn a combined income of over $100,000 (add $1500 for each dependant).
Media reports indicate that the Federal Government will be increasing these rates in the Budget to be released on 13 May 2008.
We will confirm on our website the nature of the changes as they come to light over the next week.
Increasing premiums and long waiting lists in public hospitals
The Australian Health Insurance Association has predicted the impact of changing these taxation laws, and suggested that it could lead to an increase in health insurance premiums and longer waiting lists for those who elect to use the public hospital system rather than private health insurance.
Their media release states:
“hundreds of thousands of Australian’s will now rely on public hospital waiting lists as a result of the Rudd Government’s decision to lift the Medicare levy….”
Also that these changes:
“…would reverse recent gains in PHI membership and start to tilt the fine balance achieved in the public/private mix of health care funding in Australia.”
(source www.ahia.org.au)
Ensure you are privately insured – your peace of mind
This proposed change by Government does not alter the value and peace of mind that Australians receive from taking out private health cover. In fact we believe the changes will make the need for Australian’s to have private cover even more important.
By taking up or staying privately insured you will more easily avoid the rapid increase in challenges that we believe will face the public health system over the next years.
Plus:
- People who have private cover have the peace of mind that comes with knowing they are covered for the best available medical treatments when and if they become necessary.
- It gives you the option of being treated by your own doctor
- It means shorter waiting times for elective surgery. Allowing you more control over when and where to be treated.
- It helps with services not covered by Medicare such as chiropractic, dental, physiotherapy, optical, dietary advice and some alternative therapies.
Call 1300 794 515 for advice on health insurance and to ensure you have the right cover for your health needs.
- See also iSelect's media release on the proposed changes.
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