Private Health Insurance – the fees you may be paying that you don’t know about

Private Health Insurance – the fees you may be paying that you don’t know about

Based on your age & income, did you know there are fees you may be paying that you don’t know about – just for NOT having Private Health Insurance?

  1. If you’re over 31 and don’t have Private Health Insurance you’re paying the Lifetime Health Cover loading (LHC).
  2. If you earn over $90,000 a year & don’t have Private Health Insurance, you are charged the Medicare Levy Surcharge (MLS)

What is Lifetime Health Cover Loading?

The Lifetime Health Cover loading. (LHC) is an extra fee that is applied to your hospital cover if you sign up after you turn 31.

Every year that you don’t have cover, the fee goes up by 2%! So, if you don’t get hospital cover until you’re 35, that’s an extra 10% in fees just because of your age!

What is the Medicare Levy Surcharge?

For those who earn over $90,000 a year and do not have private health insurance, you are charged an extra tax called a Medicare Levy Surcharge. This is calculated in 3 levels for both singles and couples/families.

Here’s the numbers:

For Singles if your income is  

  • $90,001 to $105,000, the MLS rate is 1.0% ($900 – $1050)
  • $105,001 to $140,000, the rate is 1.25% ($1312 – $1750)
  • $140,001 or more, the rate is 1.5%. ($2100+)

For Families if your income is  

  • $180,001 to $210,000 (see Note 1), the MLS rate is 1.0% ($1800 – $2100)
  • $210,001 to $280,000 (see Note 1), the MLS rate is 1.25% ($2625 – $3500)
  • $280,001 (see Note 1) or more, the rate is 1.5%. ($4200+)

Note 1: The family income threshold is increased by $1,500 for each MLS dependent child after the first child.

To Sum it up, if you’re in the lower income level listed above, at least $900 has been taken out of your Tax Return every year that you don’t have private health insurance! And you basically got NOTHING for it.

How can you make that money work for you instead of just giving it away? It’s simple – Get Private Health Insurance!

Why should you get Private Health Insurance?

Apart from not being charged the MLS or LHC, even the most basic health cover can give you more control over where you’re treated, and who you’re treated by. It takes the pressure off so you’re able to focus on what really matters. Even the most basic cover gives you greater piece of mind. You have more health cover and more choice, pay less tax, get a private health insurance rebate and it also helps to avoid paying more for cover when you’re older!

How do you get Private Health Insurance?

In Australia, there are over 30 insurers offering around 3,500 health insurance products – so we wouldn’t blame you if you’re a bit overwhelmed with which one to go with!

At One Click Life, we’ve taken the guess-work out of picking a Private Health Insurance provider for you, by teaming up with AIA Health.

Not only do AIA Health provide great Health Insurance, customer service & increased benefits, they are offering One Click Life members a limited time offer!

Join AIA Health by 30 November and get up to $500 cashback*

Why AIA Health?

AIA Health with AIA Vitality believe health insurance should be something that benefits you every day – not just when things go wrong.

  • Great value protection health cover designed to protect you, with up to 70% back on extras (up to annual limits).
  • Rewards for small steps when you take small steps towards a healthier life, you’ll be rewarded through AIA Vitality.
  • Global scale. Local support as a leading insurer they’re dedicated to providing you with the very best customer service from their local team.

AIA Health members have access to a wide range of benefits and rewards, including affordable dental care, discounts on optical products, and additional benefits unlocked through engagement with the AIA Vitality program.

What is AIA Vitality?

AIA Vitality is a personalised, science-backed health and wellbeing program that supports you every day to make healthier lifestyle choices every day.

CLICK HERE for more info & get your obligation-free quote today.

Don’t have a One Click Life account? SIGN UP HERE (it’s totally free!)

*Terms and conditions here.

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