What the recent changes to the Health Insurance Rebate mean for you?

To encourage people to take out private health insurance, the Federal Government introduced a 30% rebate in January 1999.For every dollar you pay towards your private health insurance, the Federal Government will give you 30 cents back. You can claim this either as a deduction in premiums, as a direct payment from Medicare or in your tax return at the end of each financial year. So if your health insurance costs you $1,000 a year, you will only have to pay $700 out of your own pocket. On 15 March 2012, legislation was passed through Parliament to means test the Private Health Insurance Rebate. The rebate will now be determined by a member’s income level and age. It is expected that this change will kick in on 1 July 2012. Howevermany Australians are uncertain about how this will affect them. So Health Partners has created a simple table to provide an indication of how you may be affected, based on your income. Individual Annual Income Rebate (up to 65)rnLess than $84,000, 30% $84,001 to $97,000, 20% $97,001 to $130,000, 10%rnMore than $130,001, 0% Individual Annual Income Rebate (65-69)rnLess than $84,000, 35% $84,001 to $97,000, 25% $97,001 to $130,000, 15%rnMore than $130,001, 0% Individual Annual Income Rebate (over 70)rnLess than $84,000, 40% $84,001 to $97,000, 30% $97,001 to $130,000, 20%rnMore than $130,001, 0% Individual Annual IncomeMedicare Levy SurchargernLess than $84,000, 0% $84,001 to $97,000, 1% $97,001 to $130,000, 1.25%rnMore than $130,001, 1.5% Couple Annual Income Rebate (up to 65)rnLess than $168,000, 30% $168,001 to $194,000, 20% $194,001 to $260,000, 10%rnMore than $260,001, 0% Couple Annual Income Rebate (65-69)rnLess than $168,000, 35% $168,001 to $194,000, 25% $194,001 to $260,000, 15%rnMore than $260,001, 0% Couple Annual Income Rebate (over 70)rnLess than $168,000, 40% $168,001 to $194,000, 30% $194,001 to $260,000, 20%rnMore than $260,001, 0% Couple Annual IncomeMedicare Levy SurchargernLess than $168,000, 0% $168,001 to $194,000, 1% $194,001 to $260,000, 1.25%rnMore than $260,001, 1.5% As indicated above, only those who earn over $130,001 or couples with a combined income of more than $260,001 will no longer be entitled to any form of health insurance rebate. Those individuals or families earning less than these amounts will have their rebates adjusted accordingly. Health Partners is open and available to discuss and work through any issues or concerns members may have. We are also committed to providing members with choice, access and information when it comes to their health care. If you have any questions, please call the team at Health Partners on 1300 113 113. We’ll do the very best we can to give you the information you need alternatively you can visit our website – www.healthpartners.com.au for further information. private health insuranceHealth Partners is open and available to discuss and work through any issues or concerns members may have.