Private Health Insurance Comparison: Stop Paying the “Lazy Tax” on Your Health
It’s a date every Australian dreads: April 1st. That’s when the government approves the annual premium increases for Private Health Insurance.
For many families, the letter arrives, the price goes up by $20 or $50 a month, and they grumble—but they pay it. They pay it because the alternative (relying solely on the public system for elective surgery) feels too risky, or because they are terrified of the taxman.
But here is the truth: if you haven’t reviewed your policy in the last 2 years, you are likely paying a “Lazy Tax.” You might be paying for obstetrics cover when you finished having kids five years ago. You might be paying for “Gold” tier extras to get $20 back on a massage.
A proper Private Health Insurance comparison isn’t just about saving $10 a month; it’s about ensuring the thousands you spend actually work for you.
1. The Tax Trap: Medicare Levy Surcharge (MLS)
For high-income earners, Private Health isn’t just about health; it’s a tax strategy.
If you earn over the threshold (currently $93,000 for singles or $186,000 for families), and you don’t have appropriate Hospital Cover, the ATO hits you with the Medicare Levy Surcharge. This is an extra 1% to 1.5% tax on your entire income.
The Strategy: Often, the cost of a basic “Bronze” Hospital policy is cheaper than the tax bill you would pay without it.
Business Owner? If you are structuring your finances, this is critical. We often review this alongside your [Small Business Insurance Quotes] to ensure your personal liabilities aren’t eating into your business profits.
2. The Age Trap: Lifetime Health Cover (LHC) Loading
Turning 31 soon? This is your deadline. The Australian Government penalises you if you don’t take out hospital cover by July 1st following your 31st birthday. For every year you wait, your premiums go up by 2%—and that penalty sticks with you for 10 years.
If you are 40 and joining for the first time, you could be paying 20% more than the person next to you for the exact same policy.
Planning for the future? A health policy protects your present, but if you are worried about long-term financial security for your family, you should also consider speaking to a [Life Insurance Broker].
3. Hospital vs. Extras: The “Bundling” Myth
Insurers love to sell you a “Combined” policy (Hospital + Extras). It looks neat, but it’s often inefficient.
Hospital Cover: This is the big one. It covers you for surgery, private rooms, and choosing your own doctor. This is “insurance” against financial ruin.
Extras Cover: This is for “maintenance”—dentist, physio, optical.
The Comparison Hack: Sometimes, the best Hospital policy is with Insurer A, but the best Extras (for your specific dental needs) is with Insurer B. A smart comparison looks at “splitting” your policies to get better value.
Self-Employed? If you rely on your body for work (like a tradie), Extras for physio are vital. But don’t forget, if you get injured and can’t work at all, health insurance won’t pay your mortgage. That’s why you need an [Income Protection Broker].
4. The “Junk Policy” Warning
Be careful of the absolute cheapest policies on comparison sites. They are often jokingly called “Junk Policies” (Basic Tier) because they exclude almost everything—including heart attacks, strokes, and cancer treatments.
They might save you from the Tax Man (MLS), but they won’t save you in a medical emergency.
As your advisors, we help you find the “Sweet Spot”—usually a Silver or Bronze Plus policy—that balances tax efficiency with genuine medical protection.
5. Why Not Just Use a Comparison Website?
Comparison websites are businesses. They often only show you policies from the insurers that pay them the highest commission. They might not show you the non-profit funds or the member-owned mutuals that often have better customer satisfaction and lower fees.
The Assurance Life Pro Difference: We take a holistic view of your risk. We don’t just look at your health fund; we look at your [Home Insurance Broker] needs, your car, and your life cover to build a “wall of protection” around your wealth.
🚀 Is Your Health Fund Healthy?
Don’t let your policy auto-renew into a price hike. Whether you are a single professional dodging the tax surcharge or a growing family needing better dental limits, let us run the numbers.
Get a health check on your wallet today. 👉 [Compare Private Health Insurance Now]
