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Why you should have Private Health Insurance

There are many reasons to take out private health insurance in Australia. Mostly, we are seeking peace of mind – the security of knowing we can get immediate access to the level of care and treatment we require, while being financially protected.

The main advantages of taking out private health cover, as opposed to relying on Medicare and the public hospital system, are:

You can choose your medical practitioner at a time that suits you in a hospital of your choice.
Your access to private hospitals is more affordable.
Shorter waiting time for elective surgery, i.e. knee repair, skin cancer treatment, etc.
Access to many extra benefits and a range of therapies and general treatments not covered by Medicare, such as dental, optical, physiotherapy and naturopathy.

5 common claims and their costs:

Operation	Price with no insurance in a private hospital*
Obstetrics	$9000
Arthroscopies (Knee Repair)	$3900
Wisdom Teeth Removal	$2000
Removal of tonsils	$2000
Colonoscopy with removal of polyps	$1600

* Please note that these 2008 prices are approximate costs only and include medical and hospital charges

Legislative incentives for private health insurance

Federal Government Rebates

The Federal Government provides a rebate at the level of 30% on Private Health Insurance. Higher rebates of 35% apply for members aged 65 to 69 and 40% for members aged 70 and over.
For more information visit http://www.health.gov.au

Lifetime Health Cover (LHC)

LHC is a Federal Government initiative designed to encourage people to join a private health fund early in life, and to maintain membership. If you take out private hospital cover after age 30, your base premium will increase by 2% for each year you are over the age of 30.

For more information visit http://www.health.gov.au

LHC - What you pay if you wait
(Based on a single person on TUH's Easy Choice*)

*These rates are annual rates for 2008 and include the 30% Federal
Government Rebate and the direct debit 2.5% discount.

Medicare Levy Surcharge

If you are single or part of a couple and earning more than the Medicare Levy Surcharge thresholds, you are required to pay an extra 1% Medicare Levy Surcharge if you do not have private hospital cover.
For more information visit http://www.ato.gov.au/