All Australians can claim a rebate of at least 30 per cent of any premium paid to a registered fund for private health insurance.
Australians can claim a rebate of at least 30 per cent of any premium paid to a registered private health insurer.
Rebates cut the cost of being insured and are not means-tested. The Australian Government introduced rebates1 to help ease the burden on Medicare and the public health system.
Rebates are claimed either as a premium reduction from the health insurer, from a Medicare office or from the Australian Taxation Office2.. Of these, 94.4 per cent of rebates are claimed as reduced premium payments, 5.5 per cent of rebates are claimed through income tax assessments and 0.1 per cent of rebates are claimed through Medicare Australia offices.
Rebates totalling $3.18 billion were paid to Australians in 2005-06.
Key private health insurance initiatives by the Australian Government have included:
Higher rebates for older Australians. From 1 April 2005 the Private Health Insurance Rebate was increased to 35 per cent for people aged 65 to 69, and to 40 per cent for people aged 70 years and over. This helped more than one million mature-aged Australians with their private health insurance, increasing the rebates to individuals and families by about $150 to $300 per year.
Lifetime Health Cover3 was introduced by the Australian Government on 1 July 2000 to encourage people to take out hospital insurance earlier in life and to maintain their cover. People who take out hospital cover later in life are charged higher premiums than people who take out cover earlier. This encourages more people to join private health insurance at a younger age and to maintain their membership. The requirement to pay a loading is removed after 10 years continuous hospital insurance.
Prostheses and medical devices listing and benefit setting is determined by the Minister for Health and Ageing, based on advice from the Prostheses and Devices Committee. The government strives to ensure that, for every Medicare procedure, there is at least one no-gap item available to consumers, and usually there are many no-gap items for patients and their doctors to choose from. In June 2007, 91.7 per cent of the nearly 9,500 prostheses on the prostheses list were included as a no-gap item.
Private health insurance incentives: the benefits
The rebate has made private heath insurance more affordable and led to more Australians taking it up. A long-term downward trend had seen private health insurance coverage fall to 30.2 per cent at December 1998. After the rebate and Lifetime Health Cover were introduced, coverage increased to more than 40 per cent. The increase has been sustained since September 2000.
As a result, pressure is being taken off the public health system because more private health insurance means more people are opting for treatment in the private sector.
Key outcomes include:
Private hospital cover was held by more than 9 million Australians (43.6 per cent of the population) at March 2007. This was 3.3 million more people than in March 1999. This included an additional 1.8 million families, 780,000 single people and 607,000 couples.
In 2005-06, insurers paid $8.36 billion in total benefits and $6.13 billion for hospital benefits.
Ancillary benefits cover was held by over 8.9 million people (43.1 per cent of Australians) at March 2007. The largest proportion of benefits paid were for dental (51.5 per cent of all benefits), followed by optical (16.2 per cent), physiotherapy (7.7 per cent) and chiropractic services (7.2 per cent). In 2005-06, insurers paid $2.23 billion for ancillary benefits.
82.7 per cent of in-hospital medical services were provided to patients with no out-of-pocket expense in the March 2007 quarter.
A Lifetime Health Cover loading was incurred in March 2007 by 465,000 people (5.1 per cent of people with hospital cover).
Private hospital admissions increased by 4.1 per cent between 2001-02 and 2005-06, compared with a 2.9 per cent increase in public hospital admissions over the same period4.
When did it start?
The Private Health Insurance Rebate took effect on 1 January 1999.
Lifetime Health Cover loadings started on 1 July 2000,
Where do I find out more information?
For more information on this, please see
http://www.health.gov.au/internet/wc...tent/private-1 ,
http://www.privatehealth.gov.au or phone 6289 9853/24 hour answering machine
1 Source -
http://www.health.gov.au/internet/wc...ers-rebate.htm
2 Source -
http://www.ato.gov.au/individuals/co...tent/14882.htm
3 Source -
http://www.health.gov.au/internet/wc...-whatislhc.htm
4 Source: Australian Institute of Health and Welfare, Australian Hospital Statistics 2005-06Australian Institute of Health and Welfare
There are more people living in California than live in Australia, thus no way to make a fair comparison.