THE 30% REBATE

The Federal Government's Private Health Insurance Rebate is helping you to save
To encourage people to take out private health insurance the Federal Government introduced a 30% rebate in January 1999.

The Federal Government's 30% rebate scheme means that for every $1 you pay, the government gives you 30 cents back. So if your annual private health insurance actually costs $1000, you will receive $300 back from the Federal Government. Or, like most people, you can arrange for your fund to have this deducted from your premium and save upfront — meaning cover worth $1000 only costs you $700.

As of 1 April 2005, the Private Health Insurance Rebate will increase from 30 percent to 35 percent for people aged from 65 to 69 years and to 40 percent for people aged 70 years and older. Older people taking out private health insurance for the first time will also be eligible for the higher rebate. Contributors to private health insurance and those joining for the first time who are under 65 years will continue receiving the Federal Government's 30 percent rebate on their private health insurance premiums.

For further information on the new rebate scheme, click here

All Australians who get Medicare are eligible — no matter what you earn. It's your rebate!

Why is it important?
By making private health insurance more affordable for more Australians, the Federal Government's rebate has helped balance Australia’s public and private health systems.

Before the Federal Government rebate, many people found it difficult to afford to stay covered. and this increased the pressure on Medicare.

The Federal Government rebate helped reverse the trend by making private health insurance more affordable for all Australians. At the moment 43.1% of Australians have private hospital insurance, and 55% of all surgical procedures are performed by private hospitals, evidence that the Federal Government’s 30% rebate has made a huge contribution to the Australian health system.

Why does the idea work so well?
Because of the partnership between the two systems. If people leave private health insurance, the cost of providing private health insurance and public health care both rise.

Fewer people with private health insurance means costs are shared between a smaller pool of people, and therefore premiums increase, which means even fewer people can afford private health insurance. As a result more people have to rely on Medicare only, which increases demand for public hospital services, and costs Governments (and the taxpayer) more money.

In fact, it would cost the Federal Government more to allow private health insurance to diminish than to continue to support people who choose it. If private health insurance disappeared the cost of providing public hospital treatment for the same number of patients would escalate dramatically.

In 2003 – 2004 private hospitals in Australia performed procedures that AHIA estimates would have cost the public hospital system $7 billion to carry out. The cost of supporting private health insurance through the 30% Federal Government rebate in 2003 – 2004 was significantly less at $2.6 billion.

This is why the current Federal Government strongly supports people with private health insurance.

Does private health insurance favour older people and the benefits they need?
No. In fact, private health insurance funds often pay claims of $50,000 to $100,000 — sometimes even more — to patients aged under 30. Private health insurance is structured fairly, with benefits to suit all ages and all health needs.

The Federal Government's Private Health Insurance Rebate encourages people to not only join private health insurance but also remain insured. The rebate, together with reforms including Lifetime Health Cover and the Medicare Levy Surcharge have helped to redress the previous imbalances in the Australian health insurance system.

How do I get the Federal Government's Private Health Insurance Rebate?
To receive your health insurance rebate you must be with a registered health fund.
You can claim the 'discount' 3 ways:

1.	Ask your health fund to include it as a premium reduction (it automatically comes out of your premium payments). This is how most people get the rebate.
2.	Get a direct payment from the government through Medicare after paying your fund and presenting the receipt.
3.	Claim it on your tax return at the end of the financial year.

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