June feels like it is flying by, which means there is only a matter of days until the changes to the private health insurance rebates arrive.
From July 1, the federal government will begin means testing its 30 per cent private health insurance rebate according to three income tiers – with singles earning more than $84,000 and couples year earning over $168,000 a year set to experience changes.
The rebate is being reduced by increments of 10 per cent – meaning that singles earning more than $130,000 and couples earning over $260,000 will see their benefits removed completely.
Many Australians may not realise that means testing will apply to premiums paid for both hospital and extras cover, as well as bringing about an increase to the Medicare Levy Surcharge.
Some non-residents may also be affected – depending on their current Medicare entitlements – as well as those over the age of 65.
Changes to the rebate may prompt some policyholders to compare health insurance plans, and see how they can minimise their costs without having to reduce their level of health cover.
A specialised health insurance broker can help you assess your situation and help you navigate the rebate changes.