Couples Health Insurance

A couple in their 40s, combined income under $186,000 a year

Alan and Jacqui are a couple in their early 40s. Alan earns $105,000 per year and Jacqui earns $70,000 per year.

If Alan takes out Singles Hospital Cover and/or Extras Cover, he is entitled to a Private Health Insurance Rebate of 16.405% because he earns over $93,000 a year. If Jacqui takes out Singles Hospital and/or Extras Cover, she is entitled to a Private Health Insurance Rebate of 24.608% because she earns under $93,000 a year.

If they take out Couples Hospital Cover or Extras Cover, they are entitled to a Private Health Insurance Rebate of 24.608% on the cost because their combined income is less than $186,000. They decide to take out Couples Health Insurance.

A couple who are both over 60, combined income under $186,000 a year

Mike and Doreen are a couple. Mike is 72 and Doreen is 61. They both have individual incomes of under $93,000 a year.

As Mike is over 70 and his personal income is under $93,000 a year, he is entitled to a Private Health Insurance Rebate of 32.812%. As Doreen is under 65 and her personal income is under $93,000 a year, she is entitled to a Private Health Insurance Rebate of 24.608% only.

As Mike is entitled to a higher Private Health Insurance Rebate than Doreen, they take out Couples Health Insurance and claim the higher rate for the Rebate.

Couple who save because of the Lifetime Health Cover Loading

Margaret and Rhonda are a couple. Margaret is 35 and Rhonda is 30. They are thinking about taking out Couples Health Insurance. As Margaret is over 35 and has never held Hospital Cover, she has to pay a 10% Lifetime Health Cover Loading (2% x 5 years). As Rhonda is under 31, she does not have to pay a Lifetime Health Cover Loading.

Margaret and Rhonda agree they both want Gold Hospital Cover. The price is the same whether they take out a couples policy or 2 singles policies.

If they take separate policies, it will cost Margaret $2,760 per year or $230 per month (with the 10% Lifetime Health Cover Loading) and Rhonda $2,520 per year or $210 per month. Their total premium will be $5,280. If they take out a couples policy, it will cost $5,580 per year, including their average 5% Lifetime Health Cover Loading. 

Margaret and Rhonda take out 2 singles Gold Hospital Cover policies because it is cheaper and more flexible than Couples Health Insurance.

A couple earning under $186,000 a year

Tony and Marcus are a couple. Tony is 26 and Marcus is 28. Tony earns $75,000 per year and Marcus earns $100,000 per year. They are considering Basic Hospital Cover to minimise Marcus’s tax because he is earning over $93,000 and has to pay a Medicare Levy Surcharge of 1%.

They use the healthslips.com.au Calculator and discover, as Tony earns below $93,000 per year, he is entitled to a Private Health Insurance Rebate of 24.608% . However, Marcus is not entitled to the Rebate because he earns over $93,000 per year. As their combined income is less than $186,000 per year, they are entitled to a Private Health Insurance Rebate of 24.608% if they take out Couples Health Insurance.

Tony and Marcus are both under 30, so they are entitled to an Age-based Discount if their insurer offers it. Tony is 26 so he is entitled to an 8% discount. Marcus is 28 so is entitled to a 4% discount. If they take out a couples policy, their combined, average discount is 6%.

Marcus and Tony decide not to take out Basic Cover because the cover is very limited. They take out a couples Bronze Plus Hospital Cover that costs them $230.00 per month, about the same as the cheapest Bronze Hospital Cover.

A couple earning over $186,000 a year

Noot and Darren are a couple. Noot is 25 and Darren is 29. Noot earns $85,000 a year and Darren just received a promotion and now earns $252,000 a year. Noot and Darren feel that they can now afford private health insurance. Their decision is partly for tax reasons because Darren now has to pay a Medicare Levy Surcharge of 1.5%.

They are considering taking out Hospital Cover and Extras Cover. They use the healthslips.com.au Calculator and discover they are not entitled to the Private Health Insurance Rebate as a couple because their combined income is over $288,000. However, if Noot takes out singles cover, she is entitled to a Private Health Insurance Rebate of 24.608% because she earns less than $93,000 per year.

As they are both under 30, they are entitled to the Age-based Discount on their Hospital Cover. Noot is 25 so she is entitled to a 10% discount. Darren is 29 so he is entitled to 2% discount. If they take out a couples policy, their combined discount is 6%. 

Noot and Darren decide to take out 2 single Basic Hospital Cover policies from an insurer that offers the Age-based Discount. This means Noot can take advantage of the 24.608% discount and the 10% Age-based Discount on her policy. Darren will receive a 2% Age-based Discount on his policy.

A couple thinking of starting a family earning under $186,000 a year

Marin and Geoff are a couple. Marin is 30 and Geoff is 26. Marin earns $80,000 a year and Geoff earns $55,000 a year. They are considering taking out private health insurance because they want to start a family. If Marin waits until she turns 31 to take out Hospital Cover, she will have to pay the Lifetime Health Cover Loading.

They use the healthslips.com.au Calculator and discover they are both entitled to a Private Health Insurance Rebate of 24.608% because they both earn under $93,000 a year. They are also entitled to a Private Health Insurance Rebate of 24.608% as a couple because their combined income is less than $186,000.

As Geoff is 26, he is entitled to an Age-based Discount of 8% on Hospital Cover. If Marin and Geoff take out a couples policy, their combined discount will be 4% (Geoff 8% and Marin 0%). 

Only Gold Hospital Cover covers Pregnancy and Birth. The cheapest Gold Hospital Cover that they can find is $425 per month, which is unaffordable for them. They opt for a couples Bronze Hospital Cover policy that allows them to avoid the Lifetime Health Cover Loading when Marin turns 31. The policy does not cover Pregnancy and Birth so they decide to rely on the public system if they have a child.

A couple thinking of starting a family earning over $288,000 a year

Michelle and David are a couple. Michelle is 27 and David is 32. Michelle earns $152,000 a year and David earns $145,000 a year. Their accountant says they will both have to pay a Medicare Levy Surcharge of 1.5% because their individual incomes are over $144,000 and their combined incomes are over $288,000. They want to start a family while minimising their tax.

Michelle and David use the healthslips.com.au Calculator and discover neither is entitled to a Private Health Insurance Rebate because they both earn over $144,000 a year. Even with a couples policy, they are ineligible for the Rebate because their combined income is over $288,000 per year.

As Michelle is under 30, she is entitled to an Age-based Discount of 6% on Hospital Cover. If they take out a couples policy, their combined discount will be 3% (Michelle 6% and David 0%). As David is 32, he will have to pay a 2% Lifetime Health Cover Loading (2% x 1 year) on Hospital Cover because he is over 30. The Loading lasts for 10 years.

Only Gold Hospital Cover covers Pregnancy and Birth. They decide to take out Gold Hospital Cover, which meets their needs and costs them $410 per month.

A couple over 50 earning under $186,000 a year

Nancy and Mark are a couple. Nancy is 55 and Mark is 58. Nancy earns $90,000 a year and Marks earns $75,000 per year.

They are considering taking out private health insurance because Nancy is a surfer and thinks she will eventually need a hip reconstruction or replacement. She is concerned about waiting for years if she relies on the public health system. Mark’s father had a triple bypass in his early 60s and Mark is concerned about developing heart issues.

They decide on Silver Hospital Cover because it includes Heart and Vascular System and Joint Reconstructions. Although it does not include Joint Replacements, this is the best option because it falls within their budget.

A couple over 50 earning over $186,000 a year

Kate and Esther are a couple. Kate is 55 and Esther is 57. Kate earns $184,000 a year and Esther earns $173,000. They are considering private health insurance because both their mothers had breast cancer and both their fathers had cataract surgery. Esther’s family also has a history of diabetes. 

Bronze Hospital Cover includes Chemotherapy, Radiotherapy and Immunotherapy, Breast Surgery and Diabetes Management and Silver Hospital Cover also includes Plastic and Reconstructive Surgery (medically necessary). However, they decide on Gold Hospital Cover because it also includes:

– Cataracts
– Dialysis for Chronic Kidney Failure
– Insulin Pumps
– Pain Management with Device.

A couple over 65 with an income under $186,000 a year

Laura and Ken are a couple. They are both 67 and reasonably fit and healthy. Their combined income is less than $186,000 a year.

They currently have Gold Hospital Cover but, since they both retired at age 65, they are struggling to pay their premium. It does not make sense to pay for Hospital Cover clinical categories they will never use such as:

– Pregnancy and Birth
– Assisted Reproductive Services
– Weight Loss Surgery
– Sleep Studies.

In fact, the only Gold Hospital Cover clinical category they might use is Cataracts. So they downgrade to Silver Hospital Cover. They will rely on Medicare for any cataract surgery, even if it involves a long waiting list.

A couple over 70 with an income over $186,000 a year

Miguel and Johann are a couple. They are both in their late 70s. Miguel has some issues with his heart and Johann has diabetes. For years, they have held Bronze Hospital Cover.

They review their policy and discover that it does not include:

– Cataracts
– Heart and Vascular System
– Dialysis for Chronic Kidney failure
– Insulin Pumps.

After deciding they can afford it, they upgrade to Gold Hospital Cover.

A couple in their 30s with different health needs

Veronica and Trevor are a couple. They are both 30 and earn $150,000 a year. They are both keen to take out private health insurance before they have to pay the Lifetime Health Cover Loading.

Trevor is fit and healthy. He is not keen on paying a huge amount for private health insurance. Basically, he sees it as a way of reducing his income tax.

Veronica has a history of health problems. She and Trevor are keen to start a family but Veronica is concerned about her fertility as she moves into her mid-30s. If she has a baby, Veronica wants to be able to choose her Obstetrician. She wants to take out Gold Hospital Cover because it includes Assisted Reproductive Services and Pregnancy and Birth. Veronica also wants to work on her health and wellbeing so is interested in Extras Cover.

They use the healthslips.com.au Calculator to explore their options and discover that couples Hospital Cover is no cheaper than 2 singles policies.

Veronica and Trevor decide to take out Singles Health Insurance. Veronica takes out Gold Hospital Cover and a Basic Extras policy to cover General Dental and Physiotherapy. Trevor takes out Bronze Hospital Cover.

A couple in their 50s with different health needs

Xian and Chen are a couple. They are both in their mid-50s. Xian earns $220,000 a year and Chen earns $182,000 a year. They have a couples Bronze Hospital Cover policy.

Xian is happy with Bronze Hospital Cover as he believes in natural therapies and keeping fit to maintain his health. He has never claimed on the policy and has it primarily for tax reasons.

Chen is concerned Bronze Hospital Cover is no longer adequate for her needs. She has seen friends spend months on public waiting lists for elective surgery and treatments. She thinks she and Xian should upgrade to Gold Hospital Cover.

In the end, they take out 2 singles policies. Xian takes out a singles Bronze Hospital Cover policy and Chen takes out a singles Gold Hospital Cover policy.