What is private health insurance?
Private health insurance helps cover the cost of some medical treatments. It can help you avoid wait times for public hospitals, offset the costs of health services not covered by Medicare, and allow you the flexibility to choose your doctor. There are two parts to private health insurance – Hospital and Extras cover (which can be purchased together or separately). Hospital cover helps pay for in-hospital costs such as surgery, anaesthesia, private rooms, and theatre fees for services included in your Hospital cover. Your out-of-pocket costs will vary according to the Hospital cover you select, the Hospital excess you choose, your health insurer, the medical professionals required, and the procedure involved. Extras cover helps pay for your regular healthcare appointments that aren’t usually covered by Medicare such as a check-up at your dentist, a new pair of glasses or treatment at your physio, and can extend to a range of other services like acupuncture and dietary advice, depending on your level of cover.
Is health insurance tax deductible?
It’s a common question - is health insurance tax deductible?
The short answer is no, it's not tax deductible, but it can be a tax offset depending on a number of factors. If you qualify for the private health insurance rebate, the Australian Tax Office (ATO) will calculate your rebate as a lump sum when you lodge your tax return (a tax offset), or you can claim the private health insurance rebate as a reduction to your ongoing premiums.
The private health insurance rebate is an amount that the Australian Federal Government contributes to reduce the cost of your health insurance premium. The aim is to help take the pressure off the public system.
The government understands that everyone's circumstances are different, and that some people can afford more than others, which is why the rebate is generally a tiered percentage discount, based on your income.
Whether you qualify for a health insurance rebate depends on two things - the age of the oldest person covered by your policy, and your single or household income.
If you have private health insurance, the amount of rebate you may receive is reduced if your income is above a certain threshold, you can find more information by visiting the ATO website or talk to your private health insurer for more details.
You can call Qantas Health Insurance on 13 49 60 for a health insurance quote and discuss your potential rebate, or get a quote online.
What is the Medicare Levy Surcharge (MLS)
The Medicare Levy Surcharge, or MLS for short, is a levy paid by Australian taxpayers who do not have private hospital insurance cover, and who earn above a certain income.
Currently, the income threshold is $97,000 for singles and $194,000 for couples and families. This includes single parent families. For families with children, the thresholds are increased by $1,500 for each child after the first.
The surcharge is there to encourage those that can afford it, to take out private hospital insurance cover, in order to reduce demand on the public Medicare system.
If you currently have an appropriate level of private hospital insurance, you won't have to pay the MLS. Depending on your level of income, you may also be eligible for the private health insurance rebate.
What does Qantas Health Insurance offer?
Qantas Health Insurance offers a range of Hospital and Extras cover options, plus you’ll also be rewarded with Qantas Points for joining or paying your premium, points that you could put towards your next holiday.
To find out more information or get a quick quote, call one of Qantas Health Insurance’s dedicated team today on 13 49 60 or click here.
