Private Health Insurance in Australia covers some or all the costs of treatment for individuals and families in private and public hospitals. Private Health Insurance also covers health services that Medicare does not cover, such as dental.
Several benefits accompany Private Health Insurance coverage, such as avoiding paying the Medicare levy surcharge, avoiding paying for ambulances, and avoiding lifetime health cover loading.
1. Avoid paying the Medicare levy surcharge
The Medicare levy surcharge (MLS) is an additional charge of 1% to 1.5% on top of the standard 2% Medicare levy. The MLS only applies to Australians that do not have an appropriate level of hospital cover and earn more than the income threshold, shown below.
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
| Medicare Levy Surcharge | Pay no MLS | 1% MLS | 1.25% MLS | 1.5% MLS |
| Income (Single) | $0 – $90,000 | $90,001 – $105,000 | $105,001 – $140,000 | $140,001 or more |
| Income (Family) | $0 – $180,000 | $180,001 – $210,000 | $210,001 – $280,000 | $280,001 or more |
For example: If you are a single person earning $103,000 annually and you do not have Private Health Insurance, you will pay 1% of your taxable income as a Medicare levy surcharge.
The MLS can be avoided by obtaining Private Health Insurance coverage from an insurance provider.
2. Avoid paying for ambulances
If you are involved in an emergency that requires the use of emergency services, the last thing you want to worry about is the cost of calling out an ambulance. The cost of calling out an ambulance in Australia can accumulate to thousands of dollars.
Queensland and Tasmania provide free ambulance transport and do not require hospital cover. All other states and territories require Private Health Insurance coverage to avoid paying ambulance costs.
For example, metro areas in Western Australia, have the following fees for calling out an ambulance:
| Service | Fee |
| Life-threatening (Emergency – Priority 1) | $1,072 |
| Urgent (Priority 2) | $1,072 |
| Non-urgent (Priority 3) | $576 |
| Patient Transfer Vehicle (Booked Priority 4 & 5) | $511 |
Using your private health coverage, you can benefit from paying excessive ambulance fees. Typically, Private Health Insurance policies reimburse people for ambulance callouts, with singles being able to make 1 claim per year and couples able to make 2 claims per year.
3. Avoid lifetime health cover loading
Lifetime loading is a penalty that applies to anyone who takes out Private Health Insurance after they are 31 years old.
Lifetime health cover loading is an extra cost imposed on anyone that is taking out Private Health Insurance after they reach 31 years old. A penalty of 2% on top of your private health cover premium applies for every year you are over 30. The penalty is applied for a 10-year period and reduces to the base rate once the term is finished.
For Example: If you are a single 40-year-old person, taking out Private Health Insurance for the first time, you will pay 20% extra on top of your premium. You will continue paying the additional costs until you are 50 years old.
To avoid paying the lifetime health cover loading penalties, you will need to obtain a Private Health Insurance policy from an insurance provider – and you can do that through One Click Life with AIA Health!
These are the top three benefits that we see, but the overall wellness benefit from having Private Health Insurance also provides peace of mind and a better health experience when you actually need it.
At One Click Life we have established a relationship with AIA to ensure you’re able to buy Private Health Insurance as well priced as possible!
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