Singles Health Insurance

A single earning under $93,000 a year

Stephen is a 24-year-old single who has just entered the workforce. He earns $75,000 per year. He is fit, healthy and rides his bike to work. Stephen is concerned about the cost of private health insurance. 

As he earns less than $93,000, per year the Private Health Insurance Rebate gives him a 24.608% discount on the price of Hospital Cover and Extras Cover. If his insurer offers it, he can also claim an Age-based Discount of 10% on Hospital Cover because he is under 25. This discount will last until he is 41 when it starts to phase out at 2% per year. 

Stephen uses the healthslips.com.au Calculator and takes out a Basic Plus Hospital Cover with a $750 excess. Factoring in the Private Health Insurance Rebate and the Age-based Discount, it costs him around $75 per month.

A single earning over $144,000 a year

Olivia is a 30-year single who earns $152,000 per year. She is fit, healthy and runs 10km each day. Her accountant has told her that if she does not take out Hospital Cover she will have to pay a Medicare Levy Surcharge of 1.5% on her taxable income, which will cost her $2,280 per year. 

Meanwhile, she is not eligible for the Private Health Insurance Rebate or the Age-based Discount because she earns over $144,000 per year and is 30. If she takes out Hospital Cover once she turns 31, she will have to pay the Lifetime Health Cover Loading at 2% per year up to a maximum of 70% for 10 years.

Olivia uses the healthslips.com.au Calculator and finds a Combined Bronze Plus Hospital and Extras Cover policy with a $750 excess that costs around $165 per month or $2,000 per year. Having private health insurance saves her $280 per year because she avoids paying the Medicare Levy Surcharge.

A single over 50 earning under $93,000 per year

Michael is a 54-year-old single who earns $85,000 a year. He has had a couple of health scares and is considering taking out private health insurance.

Michael uses the healthslips.com.au Calculator and discovers, as he earns less than $93,000 per year, the Private Health Insurance Rebate entitles him to a discount of 24.608%. As he has never held Hospital Cover, he will have to pay a 48% Lifetime Health Cover Loading (2% x 24 years) on the price of any Hospital Cover he takes out. He will have to pay the Loading for 10 years.

While Michael wants good cover, he does not need Gold Hospital Cover treatments like Assisted Reproductive Services, Pregnancy and Birth, Weight Loss Surgery and Sleep Studies. Using the healthslips.com.au Calculator he finds a Silver Hospital Cover policy with a $500 excess. It will cost him $200 per month or $2,400 per year (including the Private Health Insurance Rebate and Lifetime Health Cover Loading).

A single over 70 with an income under $93,000 per year

Lex is a 74-year-old single who earns $48,000 per year. He has always relied on Medicare and the public health system for his health needs. As he is getting older and his health needs are likely to increase, he decides he should take out private health insurance.

As Lex’s income is less than $93,000 and he is over 70, he is entitled to a Private Health Insurance Rebate of 32.812%. However, as he has never held Hospital Cover, he will have to pay a 70% Lifetime Health Cover Loading (2% x 44 but capped at 70%) for 10 years.

He uses the healthslips.com.au Calculator and finds: 

The cheapest Gold Hospital Cover policy with a $750 excess will cost him $240 per month or $2,880 per year, which he cannot afford. 

A Bronze Plus policy for $115 a month but is concerned about the limited cover and $750 excess.

A Silver Plus Policy for $200 a month with a $250 excess, which meets most of his requirements except for cataracts.

After reviewing his finances, Lex decides Bronze and Silver Cover are beyond his means. Lex decides to continue to rely on Medicare and the public health system.

A single over 65 with an income under $144,000 per year

Agnieszka is a 67-year-old single who earns $110,000 per year. In recent years, she has developed some health issues and needs a hip replacement. As a public patient, she had to wait for over 12 months for the surgery as it was classified ‘elective’.

Agnieszka is now considering private health insurance. As she earns less than $143,000, the Private Health Insurance Rebate gives her a discount of 12.303%. As she has never held Hospital Cover, she will have to pay a 70% Lifetime Health Cover Loading (2% x 37 but capped at 70%) for 10 years.

However, if she takes out Hospital Cover, she will save 1.25% on her tax because she no longer has to pay the Medicare Levy Surcharge. She uses the healthslips.com.au Calculator and finds a Silver Plus Hospital Cover policy. It will cost her $2,400 per year or $200 a week, meets her needs and is within her budget.