Older Australians lose out again as the health insurance rebate is cut

It’s no secret that older Australians are more likely to need more expensive health insurance policies – and the government rebate makes health cover a little more affordable.

But the amount retirees can claim back on their cover has been dropping over the past decade, and is set to be reduced even further.

So, how can you tackle rising costs while ensuring you get appropriate cover at the right price? One way is to compare and switch with Health Insurance Comparison.

Paying too much?

Australia: We saved our average customer $312* on their average annual premium! Select your age and see how much you could save!

*Average savings based off 25,311 customers during 2020

Gap fees, higher premiums and a rebate reduction

2021 is already shaping up to be a challenging year for Aussie seniors. Gap fees are hitting the hip pocket of older Australians hard – and will likely continue to go up this year. 

We can also expect health premiums to rise by an average of 2.74% from April at the same time the percentage that older Australians can claim will go down.

The government’s health insurance rebate was a way for Australians to enjoy the benefits of private health cover while having some of the cost of their premiums covered, with over 65s enjoying higher rebates than most. 

But the rebate percentage is now dropping again. Pensioners aged between 65 and 69 and earning under $180,000 a year, for example, will see the percentage they get back drop from 29.236% to 28.710%**.

If you’re looking to find another way to cut the cost of their private health cover, it can make sense to compare and switch funds.

Compare and switch to save

Many Australians aged 65 and above already feel like they’re paying too much for their health cover and the combined premium increase and rebate cuts are putting pressure on tight weekly budgets. 

Thankfully Health Insurance Comparison can take care of all the hard work. We compare a number of Australia’s leading health funds to find a policy that fits your needs and budget.

We’ve helped thousands of Australian seniors save when comparing and switching health funds. It’s one of the easiest and most effective ways to reduce expensive premiums.

Get Started Now:

Step 1: Select your state below .
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

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*Average savings based off 25,311 customers during 2020

**Department of Health, Medicare Benefits Division, Feb 2021
Health Insurance Ombudsman, Australian Government Health Insurance Rebate, Feb 2021
ATO, Income thresholds and rates for the private health insurance rebate, Feb 2021

This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.

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