Money Saving Idea with Health Insurance

Money Saving Idea with Health Insurance

You should take advantage of this opportunity to receive the current private health insurance rebate for next year’s private health cover premiums by contacting your private health insurer.

You are probably aware that the government is changing its Private Health Insurance rebate scheme by reducing the rebate, currently 30% for people under age 65, 35% for ages 65 – 69 and 40% for those aged above 70.

The new rebates are scaled depending on your income and age, see table attached. These reduced rebate levels are applicable from July 1st 2012. So if you pay your premium after July 1st you will only receive the lower tax rebate or none at all.

However, most private health insurers will allow you to pay your premium 12 or 13 months in advance so if you pay next year’s premium prior to June 30th 2012 you will receive the existing higher rebate.

For example, a tax payer earning $140,000 prepays next financial year’s premium in June 2012 will still receive their 30% rebate. So for a premium of $4,000 that would be $1,200. If they paid after July 1stthey wouldn’t receive any rebate.

So contact your private health insurer and find out if they will allow you to pay your premiums 12/13 months in advance.