THE 30% REBATE The Federal Government's Private
Health Insurance Rebate is helping you to save! The Federal Government's 30% rebate scheme means that for every dollar you pay, the government gives you 30 cents back. So if your annual private health insurance actually costs $1,000, 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 $1,000 only costs you $700. Since 1 April 2005, the Private Health Insurance Rebate has increased 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 are eligible for the higher rebate. Contributors to private health insurance and those joining for the first time who are under 65 years continue receiving the Federal Government's 30 percent rebate on their private health insurance premiums. For further information on the rebate scheme, click here All Australians who get Medicare are eligible — no matter what you earn. It's your rebate! Why is it important? 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, 44.5% of Australians have private hospital insurance, and 57.3% 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? 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 2008–09, private hospitals in Australia performed procedures that AHIA estimates would have cost the public hospital system over $11 billion to carry out. The cost of supporting private health insurance through the 30% Federal Government rebate in 2008-09 was significantly less at $3.9 billion. Does private health insurance favour
older people and the benefits they need? The Federal Government's Private Health Insurance Rebate encourages people to not only join private health insurance but also to 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? |