Discounts
Payments of premiums are generally monthly, quarterly, six-monthly or yearly. If you pay in advance you usually qualify for a discount, although the benefits aren't huge. One insurer, for example, offers a saving of just under 4 per cent if you pay the full 12 months at once - that's a cut from $824.20 to $793.20. With many funds if you pay 12 months in advance and the rates rise four months into the term, you escape any increase until your 12 months expire. Direct debit payments or credit card deductions often also attract a discount.
Pay promptly. If your premiums lapse for two months, the health fund will cancel your insurance. If you then resume payments, you may have to wait again to claim benefits.
How to claim your 30 per cent government rebate
There are three ways to claim your 30 per cent rebate:
- Pay reduced premiums to your health insurer
- Receive it as a tax rebate when you lodge your annual tax return
- Receive a cash payment from your Medicare office
The most popular way to get the rebate is to pay the lower premium - that way you're not laying out the money in the first place.
Each week financial advisor Noel Whittaker answers your
questions.
