Each month we’ll be talking to you about who AIA Health is, why private health insurance is important for your clients, and provide more information about the industry in general, as well as keeping you in the loop with any of our limited time offers.

 

Let’s start with the basics. 

Private health insurance will help your clients pay for health care costs that Medicare doesn’t cover, such as dental and optical. How much they pay and what is covered comes down to what level of private health insurance they choose.
 

With AIA Health, your clients can choose products that are a combination of hospital-only and hospital and extras combined cover. Hospital cover contributes to the cost of in-hospital treatments, and may help avoid public hospital waiting lists. Extras cover covers non-hospital treatments such as dental, optical, physiotherapy and chiropractic services.  

Private hospital insurance will help your client stay in control of their health – it gives the ability to choose when, where and by whom they are treated for their medical concerns. 

 

Some benefits of private health insurance include:
 

The Australian government has important loadings and surcharges that relate to private health insurance. Make sure you’re familiar with them as they could impact your client’s premium.

 

Lifetime Health Cover (LHC) loading is an Australian Government initiative that aims to encourage people to get private health insurance earlier in life. 
 

LHC applies to those who don’t have hospital cover by 1 July following their 31st birthday. If they decide to get health insurance later in life, they’ll be charged an extra fee (called a loading) of 2 per cent of their hospital cover premium.
 

For example, if they wait until 35 to get hospital cover, they’ll have a loading of 10 per cent. If your client has a monthly hospital premium of $200, they’ll have to fork out an additional $20 (i.e. 10% of $200) in additional premium each month. To avoid this surcharge, it’s advisable to get hospital cover before 1 July following your 31st birthday. 
 

The maximum LHC loading that anyone can pay is 70%. Increased premiums due to LHC loading stop after 10 years of continuous hospital cover.
 

People who are exempt from the LHC loading include new migrants to Australia who are aged 31 or over and have had hospital cover within 12 months of being registered for full Medicare benefits, Department of Veterans' Affairs Gold Card holders, members of the Australian Defence Force and people born on or before 1 July 1934. 

 

The Medicare Levy Surcharge (MLS)¹ is an Australian Government initiative aimed at reducing pressure on the public Medicare system. The programme aims to encourage people to get private hospital cover so they can use the private hospital system.
 

The MLS is levied (at a rate of 1 per cent, 1.25 per cent or 1.5 per cent) on taxable income. The base income threshold (under which you are not liable to pay the MLS) is currently $90,000 for singles and $180,000 (plus $1,500 for each dependent child after the first one) for families. Those with private health insurance don’t have to pay this tax.
 

To see the full conditions of the MLS, visit the Australian Taxation Office website.

New client offer – get your client a premium refund up to 8 weeks when they join AIA Health between 1 – 31 March 2023 on an eligible combined health insurance product. 
 

Use our easy referral process on the AIA Adviser Health Portal to get your clients this limited time offer. We’ll provide an obligation-free health insurance review at a day or time that suits them best.

 

Helpful links:

 

    *T&Cs apply and can be found here