Excess private health insurance Premium reduction or refund

Excess private health insurance

Environmental pollution is an inevitable consequence of recent advancements in industry and technology. These factors have made us more susceptible to complex diseases consequently raising the insurance premiums.  According to a statistic, the medical insurance premium is rising by approximately 5% per annum right now in Australia and the situation is so worse that even middle-class people can’t afford the costs. Hereby we will talk about the ways by which you can get rid of this huge burden.

How to reduce the premium cost:

  1. Citizen of younger ages can opt for co-payment or higher voluntary excess. In this policy, the amount of insurance premium reduces proportionally to the claiming amount, provided by the insurer company. But these policies are riskier for the elderly person as they are likely to face costly medical treatments.
  2. You have to carefully read the policy whether it contains the facilities you are looking for. Sometimes you will discover some policies of the relatively lower amount being enough to meet your medical requirements. For example, paying for obstetrics or IVF makes no sense if you are an aged people. Similarly, a policy covering knee replacement will hardly benefit a younger one. Especially you should avoid policies which demand higher premiums against useless ‘acupuncture service’ or ‘gym membership‘.
  3. You should buy an insurance policy as early as possible, at least before the age of 30. Because: the value of the premium rises exceptionally with the age.

How you to get rebates and refund from the Government:

Australian Government offers a scheme through which you get the partial or full refund of the premiums. There are two eligible criteria: firstly you have to be eligible for Medicare and secondly, you must have a health insurance policy from a private hospital approved by the Government.
You can apply for rebates by the following ways —

  1. You can claim the rebated amount during annual tax return. In this case, you have to approach Australian Taxation Office, fill and submit the form.
  2. You can also apply for premium reduction as a rebate. Here you have to register with your health fund and fill the form up.

The above-mentioned procedures and strategies will definitely benefit you to bring an equilibrium between your income and expenditure.