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Medicare provides health care for single individuals and for families throughout Australia. However, Medicare is limited and you could face significant financial expenses as well as restrictions on treatment types and care providers.
Purchasing private health insurance allows you to choose a health fund that will pay for better and more comprehensive care. Health insurance for singles is affordable for most Australians and can protect you now and in the future.
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In Australia, private health funds provide cover for things that Medicare does not. For example:
For many single individuals, an illness results in temporary or permanent loss of income without another household member to provide financial support. It is essential to have private insurance coverage so you are not hit with large medical fees at a time when your household income may have disappeared.
Anyone can purchase health insurance cover for singles, regardless of whether you are in a committed romantic relationship or not.
Because you retain the option to purchase singles cover even if you are part of a couple, you should do your research to determine whether a single’s or couple’s policy makes the most financial sense. Couples insurance can often be purchased for a lower cost than two singles policies.
It is important to note that a couple’s combined income is considered when determining whether a Medicare Levy Surcharge applies. This surcharge is assessed on higher-income individuals if you do not purchase hospital cover. Purchasing either couple’s cover or two separate single’s policies will satisfy requirements and prevent the surcharge.
Purchasing health insurance cover for singles can protect you from financial hardship due to illness or injury. With the purchase of private cover you can limit “the gap,” which refers to out-of-pocket payments for medical care. Private cover can provide greater financial security and broader access to better care.
You may need to purchase health insurance cover to avoid the Medicare Levy Surcharge, which is mandatory for higher-income individuals and families who do not hold private Hospital insurance. For 2016-17, a single individual earning $90,000 or above will be obliged to pay the MLS if they don’t have Hospital cover. The higher your income, the more you can expect to pay (up to a maximum of 1.5%).
The more comprehensive your cover, the more you can expect to pay to purchase for it. However, buying a comprehensive policy makes it possible to pay less when you actually require medical treatment. You must balance whether you wish to pay more upfront for greater certainty if you get sick or whether you prefer lower premiums but higher treatment expenditures.
It is also important to think about your lifestyle now and in the future. For example:
You will have to serve a waiting period when you start a new private health insurance policy or increase your level of cover. A waiting period protects members of the fund by ensuring that individuals aren't able to make a large claim shortly after joining and then cancelling their membership. This kind of behaviour would result in increased premiums for all members.
Use this calculator to choose a hypothetical date in the future (or leave it on the default setting, which is today's date) to determine when you will be covered for various types of coverage.
Months | Standard Waiting Period |
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0 |
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2 |
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6 |
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12 |
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When buying singles cover, you have control over the extras you wish to include.
The cost of private health insurance for singles varies depending upon the types of cover purchased and how comprehensive the cover is. Factors that affect the cost include:
Shopping around for premiums is advised to find affordable private health insurance for singles.
Single individuals may obtain rebates from the Australian government to help pay health insurance premiums. The available rebate varies depending upon income. If you are not in a legal marriage, de facto marriage or registered relationship, your household income is the sole source of funds used to determine eligibility for the rebate. If you are in a recognized relationship, your combined income is used to determine rebate eligibility even if each partner purchases a separate single’s policy.
A single individual is eligible for a rebate provided their income is $140,000 or under. Your age affects how large the rebate will be. For example, a single person with an income between $105,001 and $140,000 who is under 65 would receive a rebate of 8.930 per cent. At age 65, the rebate would increase to 13.395 per cent. At age 70 and up, the rebate would be set at 17.861 per cent.
There are financial consequences associated with not purchasing health cover:
The financial costs of not purchasing health cover for singles can total in the thousands if you become ill. Protect your financial future by securing appropriate cover.
Confused? Not sure if this applies to your situation? Phone us on 1300 163 402 for some free, no obligation advice.
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