Wednesday 13 May 2009
2009 Budget: A message from Richard Bowden to customers regarding proposed changes to the private health insurance rebate
The Federal Government has confirmed the changes it wants to make to the private health insurance rebate and the Medicare Levy Surcharge (MLS). It's important to note that these changes will still need to be approved by the Senate, and this can be a lengthy and complex process. If the changes do get through the Senate they will not be implemented until 1 July 2010, so there is plenty of time for us to fully understand what they may mean and what options are available to you.
It is confirmed that the proposed changes will not affect singles earning $75,000 or less and couples/families earning $150,000 or less a year.
However, for people earning those thresholds or above, the proposal is to means test the rebate and the MLS by introducing three new 'Private Health Insurance Tiers'. This will result in the following changes:
| Currently* | Proposed for Tier 1 | Proposed for Tier 2 | Proposed for Tier 3 | ||
| Singles | $0-$70,000 | $70,001+ | $75,001 - $90,000 | $90,001 - $120,000 | More than $120,001 |
| Couples/Families | $0-$140,000 | $140,001+ | $150,001 - $180,000 | $180,001 - $240,000 | More than $240,001 |
| MLS | 0% | 1% | 1% | 1.25% | 1.5% |
| PHI Rebate | |||||
| Up to 65 years | 30% | 30% | 20% | 10% | 0% |
| 65 - 69 years | 35% | 35% | 25% | 15% | 0% |
| Over 70 years | 40% | 40% | 30% | 20% | 0% |
*It is proposed that there will be no changes for PHI customers who earn less than the Medicare Levy Threshold.
These proposed changes have the potential to place financial pressure on millions of Australians who value choice and access to affordable health care. They also place the currently strong and effective balance between the public and private systems under threat.
Our immediate focus will be on helping you, our customers, understand the impacts of these changes on your individual circumstances, and helping you find ways to continue to be able to best manage your health needs. We are also committed to working closely with the Government and the health sector to ensure you continue to have choice and access to quality healthcare.
Richard Bowden
Managing Director
HBA
 | View "HBA says rebate changes place additional pressure on millions of Australians" media release |
| View our FAQs on what the proposed 2009 Federal Budget changes mean to you |
