Best basic hospital cover
There are a range of financial incentives to coax us into the private hospital system. So even if you're young and healthy and don't think you need private hospital cover, there could be financial reasons to take it out. If you don't have private health insurance, you might be up for:
- the extra Medicare Levy of at least 1% if earning more than $90,000/year (single) or $180,000/year (family)
- Lifetime Health Cover surcharges of an extra 2% on your premium once you turn 31.
In this article, we show you the cheapest basic cover policies in each state that are a good choice if you want hospital cover for tax purposes.
These policies only provide very basic cover, so some services such joint replacement surgery or having a baby may be fully excluded. If you need these treatments, you can only go as a public patient to a public hospital – just like somebody who doesn't have private health insurance.
But basic policies still provide cover for thousands of procedures and treatments in a private hospitals, including cancer screening and surgery, chemotherapy, gallstone surgery, and treatment for flu, asthma, pneumonia and infections – in short, they provide much more than junk insurance.
If you take out one of these cheap policies, review your private health cover regularly and upgrade if needed, for example if you're planning to start a family. (Find out more about health insurance and having a baby.)