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What you need to know
After 31, not having hospital cover will make health insurance more expensive for you in the future.
If you earn over $90k, you will be charged the Medicare Levy Surcharge if you do not have hospital cover.
Why you should consider health insurance when you turn 30
Prices will rise after you turn 31
A 2% lifetime Health Cover loading (LHC) is added to your health insurance premium for every year you don't have hospital cover over the age of 30. That fee accumulates, so if you go without hospital insurance until you're 40, you'll be hit with a 20% fee. It also stays in place until you've held hospital insurance for 10 years.
There's a tax surcharge if you earn over $90k
The Medicare Levy Surcharge (MLS) is an additional tax that you have to pay if you earn over $90,000 as a single or $180,000 as a family. Depending on how much you make, you'll pay a levy of between 1% and 1.5% of your annual income — that's between $75 and $181 more tax a month.
Compare cheap policies to avoid the LHC and MLS
You only need a basic or bronze health insurance policy to avoid both of these surcharges. That's great news, because these policies tend to be very affordable. Here are a few basic and bronze policies available from Finder partners. All prices are based on a single individual with less than $90,000 income and living in Sydney.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How much you can save by getting hospital cover before 31
You can avoid the lifetime health cover loading penalty by taking out basic hospital insurance with an excess of $750 or less for singles before 1 July following your 31st birthday.
Let's put that in real terms. Say a health insurance policy is available for $600 per year. If you wait to take out your first policy at 40 it's going to cost you 20% more than that – $720 per year.
Here are a few more examples:
Age
Loading
Cost of cover
You've had cover since 31
If this is your first hospital cover
35
10%
$600
$600
$660
40
20%
$650
$650
$780
50
40%
$700
$700
$980
60
60%
$800
$800
$1280
Other benefits for health insurance in your 30s
Health insurance offers a lot more than just the ability to avoid additional taxes and surcharges. For people in their 30s, there arelots of ways you can benefit from the right health insurance policy. You can roughly divide those benefits into extras and hospital cover.
Extras cover
Dental Coverage: Dental services aren't covered under Medicare for most people, but are super important for 30-somethings. An extras policy with general dental coverage will cover post preventative treatments, while major dental is what you'll need for coverage for things like major surgery and braces.
Optical: Have glasses? If so, optical coverage is going to be super useful for you, and can cover the cost of prescription and contact lenses.
Physiotherapy: As we get older, things start to go wrong with our bodies, especially if we exercise regularly! Extras coverage can chip in on the cost of regular physio sessions.
Healthy lifestyle: Lots of extras policies are increasingly offering benefits for the costs involved in staying healthy through your life, which can prevent health problems down the line. This can include benefits for gym memberships, pilates, quit smoking aids and more.
Hosptial cover
Bone, joint and muscle treatment: In your 30's you're probably still staying active, and issues with your bones, joints and muscles are likely to start cropping up. All bronze policies include cover for private bone, joint and muscle treatments, including joint reconstructions.
Gynaecology, miscarriage and pregnancy termination: If they are relevant to you, these services are covered under all bronze hospital policies. These can be more and more important for people in their 30s, so may be worth considering cover for.
Pregnancy: If you're thinking of having a baby and you'd like to access the benefits of the private system, you'it's worth considering a silver or gold hospital policy that covers pregnancy and childbirth.
Ambulance: Most hosptial, extras and combined policies include cover for emergency Ambulance transport, which is not covered under Medicare in most states.
Grab a great sign-up deal this June 2022
If you're ready to jump into a new health insurance policy, one of the best ways to start is with a sign-up deal. Here are a few of the best sign-up deals that are currently live from Finder partners.
The main reason people buy health insurance in their 30s is to avoid the Lifetime Health Cover loading, or to avoid the Medicare Levy Surcharge. Most hospital policies will let you avoid these. After that, the best health insurance for you is a policy that covers the treatments that are important to you.
Even if you've missed dodging the fee, but plan to take out private health insurance at some point in your life, it's still worth getting a policy. That way you'll avoid the increasingly expensive loading fees.
A lot of common health conditions are covered under Medicare in Australia, so you don't technically need private health insurance. However, there are a lot of benefits to private health insurance. These include the ability to avoid the Medicare Levy Surcharge and Lifetime Health Cover loading, as well as getting coverage for a range of additional health treatments.
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As Finder's insurance group publisher, Alex Holderness aims to make confusing topics easy to understand. She's been published in Money Mag, Yahoo Finance, Hospital Health, and is a contributing author for Google's Startup Grind. She has a keen passion for running and is currently studying for her General Insurance certification.
Health insurance points offers can give you frequent flyer miles and other benefits for taking out cover, but these points shouldn’t be the only factor you consider when choosing an insurer.
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