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LoansCredit CardsOlder Australians claim more and are more likely to need the categories that only appear in the higher hospital tiers, which changes the calculation from the one that applies earlier in life.
Two things work in your favour, though, and both are frequently left unclaimed: the government rebate increases with age, and any Lifetime Health Cover loading you carry falls away after ten years of continuous cover.
The Australian Government Rebate on private health insurance is income-tested, and the percentage you receive also steps up at 65 and again at 70. You can take it as a reduced premium or claim it at tax time. The rebate percentages are adjusted annually, so check the current rates at privatehealth.gov.au rather than relying on a figure you were quoted some years ago.
If you took out hospital cover after 1 July following your 31st birthday, you have been paying a Lifetime Health Cover loading. It is removed once you have held continuous cover for ten years. Funds are supposed to drop it automatically, but it is worth checking your statement around the ten-year mark, because if it has not come off you are paying up to 70% more than you need to.
Joint replacement, cataract surgery, cardiac procedures and dialysis are the categories that become materially more likely with age, and they are distributed unevenly across the tiers. Cataract and joint replacement in particular sit higher up the tier list than people expect, and finding that out at the point of needing surgery is an expensive way to learn it. Review your tier against the categories rather than against the price.
The extras that pay off shift with age. Dental remains worthwhile for most people. Optical claims usually increase. Hearing aids are a high-cost item with long waiting periods and lifetime rather than annual limits, so if that is on the horizon it is worth checking your policy's terms well in advance.
Premiums in Australia are community rated, so funds cannot charge you more purely because of your age. What does change is that the higher tiers become more relevant, and higher tiers cost more. The age-based rebate increases at 65 and 70 partly offset this.
After ten years of continuous hospital cover. It should come off automatically, but check your premium statement around that anniversary to be sure it has.
Not automatically. What matters is whether the specific categories likely to affect you — cataracts, joint replacement, cardiac — are covered unrestricted at your tier. For some people that means Gold; for others a Silver Plus policy covers the relevant categories for less.
Medicare Levy Surcharge thresholds and government rebate percentages are reviewed regularly, so this page does not quote them. For the current figures see the ATO and the government's privatehealth.gov.au.
