There are a few government rules that apply to health insurance and they can be confusing. Here’s a run-down for you, and if you’d like to chat about any of these, just give us a call on 1800 808 690.

 
Private Health Insurance Rebate

The Private Health Insurance Rebate was introduced by the Commonwealth Government as a financial incentive to help Australians afford private health cover. The Private Health Insurance Rebate applies to all Peoplecare products and the amount of your rebate depends on the age of the oldest person on your membership:

Most people choose to take their rebate up front as a lower premium, but if you’d prefer to claim your lump sum through your tax at the end of the financial year, just let us know.
 

 
Medicare Levy Surcharge

The Medicare Levy Surcharge applies to Australian taxpayers who don’t have private hospital cover and who earn above a certain income. The surcharge aims to encourage people to take out private hospital cover, and use the private system wherever possible. The aim is to reduce the demand on the public system.
 
The surcharge is 1% of taxable income. It is on top of the Medicare Levy of 1.5%, which is paid by most Australian taxpayers. The Medicare Levy Surcharge is paid by people earning over the income threshold who don’t have private hospital insurance. The income threshold changes each financial year and the current threshold is on our Rates Sheet.
 
You don’t have to pay the surcharge if your taxable income is below the income threshold.
 
If you have any Peoplecare hospital cover, don’t worry! All our hospital covers exempt you from the 1% Medicare Levy Surcharge.

Lifetime Health Cover (LHC)

Lifetime Health Cover is a Commonwealth Government initiative to reward people who keep their hospital cover. LHC recognises the length of time a person has private hospital cover with
a registered health fund. If you start your cover earlier in life and maintain your hospital cover you’ll pay a lower premium each year compared to someone who starts their cover at a later age.
 
Provided you start your private hospital cover by 1 July after your 31st birthday,  you won’t have to pay a LHC loading. If you don’t take out hospital cover until you’re older, your premium will be 2% higher for each year that you’re over 30. The maximum LHC loading of 70% is reached at age 65.
 
People who were born on or before 1 July 1934 are exempt from LHC and can join a health fund at any time and pay the same premium as someone who takes out cover at age 30.
 
LHC loadings stop after 10 years continuous hospital cover (conditions apply).