Does anyone understand the hospital cover thingo that we're meant to get sorted out by EOFY? I can't quite get my head around it.

Does it only apply to people who earn over $80k?

Medicare levy is to pay for health services for low income earners or who don't have private health insurance. Dependent on your income levels will dictate as to whether you pay this levy, waiver of the levy is only possible if your low income earner or a high income earner with private health insurance established for a min a 12 months.

www.ato.gov.au

This site will give you the finer details.

Quote:

Originally Posted by longhornie

Does anyone understand the hospital cover thingo that we're meant to get sorted out by EOFY? I can't quite get my head around it.

Does it only apply to people who earn over $80k?

The medicare levy is 1.5% of your taxable income which everyone normally pays. If you earn $84,000+ / year, you need to have private insurance to avoid additional surcharge of 1%-1.5%.

Also...

If you do not have hospital cover on the 1st of July following your 31st birthday and then decide to take out hospital cover later in life, you will pay a 2% loading on top of your premium for every year you are aged over 30.

For example, if you take out hospital cover at age 40 you will pay 20% more than someone who first took out hospital cover at age 30. The maximum loading is 70%.

I personally suggest you take private insurance because you can you it whenever you need to and you will not have to wait a long time in a public hospital. That's better than paying additional medicare surcharge for no additional benefit. It costs me less than $60 per month to pay my hospital cover. Ask your employer if you have a discounted health insurance partner.

So does it really comes down to the decision: Do I think I'll ever be anything other than a 'low income earner'?

or is it more a decision: "Do I think I'll ever need more coverage than medicare provides and do I think that will be in excess of what I would have to pay until that is needed?"

Or if I decide at 45 that I want private cover, but still am a 'low earner' would I still have to pay the extra 30% or is that just if I earn over $80k?

i dont have private health insurance nor do i plan on getting it any time soon

i usually pay up to $800+ / year on sports chiros/physios that i cant claim bac on (cos of no cover) but that still works out cheaper than paying a yearly cover

also, if i broke a leg etc id be ok with public hospital and there not gonna ignore me cept for elective surgery

plus, (working in th community services sector) i earn below th threshold ...... i was offered th CEO job with a NGO last year but turned it down - u seriously couldnt pay me enough to take on that kinda responsibility - and given i choose to work part-time i aint gonna be earning over that threshold any time soon

thats my 2 cents

Quote:

Originally Posted by longhornie

So does it really comes down to the decision: Do I think I'll ever be anything other than a 'low income earner'?

or is it more a decision: "Do I think I'll ever need more coverage than medicare provides and do I think that will be in excess of what I would have to pay until that is needed?"

Or if I decide at 45 that I want private cover, but still am a 'low earner' would I still have to pay the extra 30% or is that just if I earn over $80k?

it's really up to you.

the idea of insurance is to insure for the unknown. in NSW ambulance can be expensive and not covered by medicare. and if you get sick and you badly need private hospital cover you will spend a lot.

it's up to you if you want to take chances, depending on how risky your activities are, how healthy you are, and if you can afford insurance or future hospital bills (touch wood).

personally i took hospital cover not purely because of tax but after weighing all factors (cost and benefit of having a cover / paying surcharge and future ambulance and hospital bills)

Quote:

Originally Posted by longhornie

Or if I decide at 45 that I want private cover, but still am a 'low earner' would I still have to pay the extra 30% or is that just if I earn over $80k?

the 2% per year of extra loading applies, regardless of your future income level. it's fixed.

Private hospital insurance is becoming more of a necessity and it's worth the investment in the long term.

so those of yous that have private ins. id be curious to know how much it costs u each year for ur cover, and how many times (and/or costs) uv had to rely on it

my sums tell me its cheaper without it - even allowing for physio/chiro etc each year

I thought you dont pay till to earn more than $80k

just go to the government website and read all about it - not that simple, but it is there.... see anthony's post .

Quote:

Originally Posted by sneakos

so those of yous that have private ins. id be curious to know how much it costs u each year for ur cover, and how many times (and/or costs) uv had to rely on it

my sums tell me its cheaper without it - even allowing for physio/chiro etc each year

sneaky, whether you want/need private cover is a personal matter based on your personal circumstances.

in my case, i only pay less than $60 a month for a basic insurance cover that will let me almost break-even compared to the additional tax i have to pay if i don't get a private cover.

i wish i will never have to claim from insurance because i don't want to get sick or be involved in an accident. however, if my net financial benefit (tax savings minus insurance cover premiums) is almost break-even, it may be worth taking a cover. and if something happens to me, the insurance can pay for ambulance (land and airlift) which can be expensive and not covered by medicare, plus i will have extra choices of heath provider compared to relying on government medicare alone. and it also potentially saves me from the extra 2% per year loading if in case i will need private insurance in the future.

for anyone interested in private health cover and the pros and cons, go to http://www.privatehealth.gov.au/healthinsurance/

Why should I get Health Insurance?

The possibility to save on tax (Medicare Levy Surcharge) or additional lifetime health cover charges (Lifetime Health Cover Loading) for those people affected is often a compelling enough reason to purchase health insurance, but what else should you consider?

Without health insurance, you may not be able to afford expensive medical services when you need them. Do you really want to be significantly out of pocket when you are sick?

Some of the top reasons people get health cover are listed below:

• Health insurance may be able to pay for "lifestyle" services that you use often

Many people do not realise that you may be able to claim part of your gym membership joining fee or remedial massage costs on selected policies. Check the policy details for services covered, including any relevant restrictions or conditions, limits, and waiting periods before any decision to purchase.

• You could save $$ on tax and get health insurance cover!

For most singles with a taxable income over $84,000 ($168,000 for couples and families) the government will charge an extra 1% in tax. This is called the Medicare Levy Surcharge (MLS) and occurs if you don't have qualifying private hospital insurance.

Depending on their circumstances, people may be able to buy basic hospital cover that is cheaper than the 1% surcharge that has to be paid in additional tax. The government will then waive the MLS depending on the period you hold cover and the type/level of cover held, and you could walk away with a great health insurance policy!

From 1 July 2012, as part of the changes to the private health insurance rebate, the current 1% MLS will be increased based on annual income levels. More information about increases to the MLS can be found in http://www.privatehealth.gov.au/heal...ancerebate.htm.

• Can you afford to “self” insure?

Studies have shown that having health insurance can be a much cheaper option in the long run for some people.

For example - Self funded knee surgery could set you back up to $13,000 - to save this money before the surgery may be impossible for some.

If in the future, you find out that you need knee surgery (or some other elective treatment), you will need to have the right cover in place, and to have served any relevant waiting periods, or else you may have no option but to save for the surgery.

• How long do you want to wait to be treated?

Are you prepared to stay on waiting lists for long periods to be treated in the public system?

With private hospital insurance you have a much greater chance of having your choice of doctor. If you're admitted as a public patient, the hospital assigns a doctor to you. Typically private patients have shorter waiting periods for elective surgery.

"Elective surgery" refers to conditions that aren't life-threatening, but that doesn't mean it's not a painful condition or that it is unnecessary surgery. For example, if you need a knee operation or kidney stones removed…neither condition is usually considered life-threatening but the shorter the wait the better!

"Elective surgery" doesn’t always mean cosmetic surgery. Cataract removal, gall bladder removal, coronary bypass graft, tonsillectomy, repair of a perforated eardrum all fall under the category of elective surgery. Many conditions that require elective surgery are painful, making the waiting period very difficult.

• You are buying peace of mind

Choosing the right Private Health Insurance can help put you at ease so that unexpected eventualities can be covered (depending on your level, type of cover and any relevant restrictions that may apply), with you and/or your family having greater control over the medical services you receive and the timing of those services.

• Government penalties for not covering you and your family (Lifetime Health Cover)

You could end up paying more for health insurance over your lifetime if you don't purchase before you're 30. If you join after your 31st birthday in all likelihood you will be required to pay a 2% surcharge on top of your premium per year up to a maximum surcharge of 70%. So, for example, if you join at 45 you pay 30% more for your health insurance than someone who joined at age 30.

The Private Health Insurance Act 2007 now includes a new provision requiring health insurers to cease including the loading to the basic premium after ten years continuous hospital cover.

• For the fit and healthy

If you're young and healthy and your concerns are accidents or emergencies, you're unlikely to have a significant wait for any hospital treatment, regardless of whether you have health insurance or not.

People approaching an age where serious illness is considered more likely, or those who think they might need elective treatment, may decide private health insurance is valuable for them.

Some consider the "comfort factor" in private hospitals and the need for "extra" health services and the ability to stay at a hospital generally of your choice. Depending on the selected hospital and availability, some may also offer "luxuries" such as single rooms, private bathrooms and TVs. Additional charges may apply for such services.

• Extras cover

If you have regular trips to the dentist or physiotherapist, or you need glasses, (now or potentially in the future) you may want to consider extras cover, which you can buy with or without hospital cover.

You can also get extras cover that pays a benefit for natural therapies like acupuncture or naturopathy on selected policies.

Remember extras cover is the one area where you can actually get something back to help reduce your day to day out of pocket expenses - such as glasses, dental, chiropractic, massage and more.

so american to get health insurance

Bloody yank! lmfao Jks

Quote:

Originally Posted by crazzymikey

so american to get health insurance

in america, there is no medicare. you are left on your own. you're lucky if your're employed and your company pays for medical insurance.

however, obama's recent healthcare overhaul will hopefully help millions without health cover.

australians, brits and canadians are lucky to have government funded healthcare!!!

Quote:

Originally Posted by wysi

in america, there is no medicare. you are left on your own. you're lucky if your're employed and your company pays for medical insurance.

however, obama's recent healthcare overhaul will hopefully help millions without health cover.

australians, brits and canadians are lucky to have government funded healthcare!!!

americans dont look after their citiziens very well

Quote:

Originally Posted by crazzymikey

americans dont look after their citiziens very well

and they pay a lot of taxes so they can afford to make weapons and fighter planes and go to war in iraq .

america also taxes its citizens wherever they are in the world. no wonder many americans are now renouncing their US citizenship when they become citizens of other countries.

Quote:

Originally Posted by wysi

and they pay a lot of taxes so they can afford to make weapons and fighter planes and go to war in iraq .

america also taxes its citizens wherever they are in the world. no wonder many americans are now renouncing their US citizenship when they become citizens of other countries.

well considering the small percentage of their population who has even left the country is so small I think that sounds to be rather much of an exaggeration.

whilst a huge percentage of australians live abroad and many more have left the country

I think that considering the state of most public hospitals is pretty pathetic, private health is a good investment if it's something you can fit into your budget.

And I agree with wysi in regards to not ever having to make use of your private health insurance. And if it does ever happen atleast I know that I would have a decent standard of care. Not saying that public provides substandard, they just don't have enough beds, staff, equipment ect.......

Oh and one more thing. Calling an ambulance is expensive if you don't have private health insurance, very expensive.....

Quote:

Originally Posted by sneakos

so those of yous that have private ins. id be curious to know how much it costs u each year for ur cover, and how many times (and/or costs) uv had to rely on it

my sums tell me its cheaper without it - even allowing for physio/chiro etc each year

well I am withNIB and it got close to $200 a month ( I claim the 30% back at tax time ) so went in and with a few changes I got it down to about $146 a month but that has gone up.

Still over the last couple of years I had a Crown and some old fillings changed. That was about $3500 worth and got a reasonable claim back plus I do the physio thing a couple of times a year.

Every 5 years I get colonoscopy and gastroscopy done at the same time ( double ender my Dr calls it ! ) and I only pay the excess and its at a private hospital in North Sydney.

I just feel easier with it as have heard of people I know having problems getting stuff in a public hospital.

Quote:

Originally Posted by Anthony Mahera

Oh and one more thing. Calling an ambulance is expensive if you don't have private health insurance, very expensive.....

in NSW, an ambulance costs $331 plus $2.99 per km of travel for up to $5,433 max. that's on top of whatever other expenses and medicines you have to pay for.

I have top health cover, I think it's worth the investment for my peace of mind...
Prob about $150 p/m I think...

Private medical insurance will probably never pay for itself. Neither will house or car insurance for most people. It wouldn't be insurance if it did. You pay for peace of mind and the possibility that something might happen. In terms of private medical, you also pay for convenience and preference and an arguably better level of care and quicker service. All for the price of eating out at a cheap restaurant once a week ?
The more people who have it, the cheaper it becomes for everyone, as you have more people paying for something only a few will need - it is a numbers game.

the more people get private insurance, the lesser the general population will depend on medicare and the lesser the pressure on public finances.

i think people who do not look after themselves should pay more tax!!! it's unfair to those who stay healthy and pay the tax based on income.

Quote:

Originally Posted by wysi

i think people who do not look after themselves should pay more tax!!! it's unfair to those who stay healthy and pay the tax based on income.

i agree with that part

id go further and say there should be (massive) tax on junk food and a tax on processed foods generally and that money used to subsidise fresh and/or perishable food

unfortunately these proposals will always be difficult to implement.

Quote:

Originally Posted by sneakos

i agree with that part

id go further and say there should be (massive) tax on junk food and a tax on processed foods generally and that money used to subsidise fresh and/or perishable food

Good point

they could work out a pretty simple ratio based on ingredients: if the "bad" ones outweigh the "Good" ones, then they get taxed. Neutral ingredients don't count either way. THis could be in terms of ecologic and fiscal sustainability as well as
nutrition. In the end system health is what we need to be focussed on. A healthy fish plunged into a putrid aquarium will not stay healthy for long.

That could bring a massive shake-up in how we look at food as nutrition rather than food as filler and look at value in broader terms.

For example Red Wine might score very high because of its phenols and tannins, its antioxidants, and benefits to cardio-vascular health, despite the potential for alcohol related problems from over use. When used as suggested, the glass of red probably offers more benefits than detriment and therefore should be offered at an incentivised tax.

Additionally grape growing is a strong value added product which Aussie farmers are able to participate in on a equal footing with other producers. In the big scheme of things vines require less fertilizers and pesticides than other bulk-crops. Our generally poor soils and dodgy climate do not seem to adversely effect vine growing as they would other crops. Further the woody nature of the vines act as a carbon sink and the broad leaves shade the soil during the growing season in a way that grains cannot.

A cola might score very low because it contains mostly sugar and carbon dioxide - niether of which are health promoting - and wich both could contribute rather directly to a reduced state of well being: dental decay, obesity, diabetes, hyperactivity and reduced capacity to concentrate. Not to mention that direct release of gasseous carbon into the atmosphere upon opening and all of those associated problems. All of these problems start from using the product precisely as indicated - much like 'every cigarette does your body harm'.

Almost none of the ingredients in a softdrink are grown locally. Further the ingredients of the softies are processed to such a degree that the value-add goes not to the grower (as in a farm-winery) but to a production factory.

Similar incentives could be offered for things like gym membership or active gear such as bicycles, climbing kit, diving gear; to be off set by more sedentary activities being more highly taxed such as video games, dvds, cinema.

You cannot tax games, DVD, or movies now; they tried that, it lead the demand over seas...
Unfortunately, things are getting too global these days...

Regulation will start to falter in the next 50 years