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Health insurance reforms at a glance
29 Apr 2002
Changes were introduced by the Federal Government to the healthcare system nearly two years ago, aimed at easing pressure on the public system. The Lifetime Health Cover reforms encourage people to lock into health insurance early in life and get them to stay insured. The main points of the system are:
- If you're single with a taxable income of $50,000 a year and don't have private health insurance, you'll have to pay an extra 1 per cent tax, known as the Medicare Levy Surcharge. On a $50,000 p.a. salary, that's $500.
- A couple or family with a combined annual income of $100,000 who don't have private health cover will face $1,000 on top of their Medicare levy.
- For each year after you turn 30 and have not taken out private hospital insurance you'll face a 2 per cent premium increase. It's capped at 30 per cent.
- When you join up for private health insurance you're given a "certified age of entry". You can suspend private cover for up to two years before your certified age of entry is affected.
- You can change funds without being subject to waiting period requirements.
The Australian Financial Review, Money supplement, page 4, 29/04/2002.
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