Health Insurance Rebates: What They Are and Why They're Important

By Collins Nwokolo Wednesday, 21 February 2018

Investing in your health insurance will be one of the wisest decisions you will have ever made. Why so? Life is full of uncertainties and while there is a possibility of certain scenarios where you have invested a bit too late on your health insurance to be able to reap its full benefits, there surely is no such thing as being "too early" to do so.

Whether you're still on the first step of establishing your own career or you're planning to start your own family soon, dropping a partial amount of your money on health insurance will act as a safety net, should anything happen to you in the future. However, there are still millions of Australians who think that acquiring health insurance is expensive and unnecessary. That's why, since the Howard government during the late 1990s, the private health insurance rebate was passed as one of the three policy incentives. So what is a health insurance rebate?

What Are Health Insurance Rebates

It is no secret that a lot of Australians are intimidated by the thought of investing in health insurance, and that's what the government has been trying to cure. A health insurance rebate is basically an act in which the government covers some of the cost of the public's premiums. The fact that it is income-tested means they cover what is only necessary based on your annual income in order to encourage you to invest in your own health care.

This policy applies to the hospital cover (accommodation, surgeries, pharmaceuticals, and laboratory testings), general cover (physiotherapy, speech therapy, hearing aids), and ambulance covers only, excluding the overseas visitors cover.

YOU SHOULD READ: A Beginner's Guide To Understanding Health Insurance

Why are health insurance rebates so important?

For you, we have narrowed down the top three reasons which have made health insurance rebates so important:

1. It encourages the public to invest in their health insurance

Some people only have health insurance because it has become a requirement for their job and their companies are paying for it. But when left to their own devices, most wouldn't even think about signing up for it. With the government shouldering partial of the cost of your health insurance, you are less likely to be intimidated by the monthly payments and focus instead on your future, since the government has your back.

2. Investing in your private health insurance gives you more freedom with its benefits

Health insurance rebate important

With private health care insurance that is partly taken care of by the government through rebates, you will have a peace of mind knowing that you have more freedom when it comes to accessing its benefits when they’re finally needed. Here are some advantages and what you wouldn’t have without health insurance:

  • Freedom to be see the doctor of your choice
  • It covers dental care, optical care, speech therapy, physiotherapy, chiropractic, endodontic, non-PBS pharmaceuticals, and other general treatments not generally covered by other types of health insurances
  • Freedom to choose the hospital you want to be admitted to
  • Shorter waiting list for surgeries

3. It allows you to save more 

The worst case scenario is when you find yourself involved in a sudden accident, or you find out you're in dire need of treatment and surgery due to a pre-existing illness or ailment. Without a health care insurance, this will be a whole ordeal for you—a financial burden. With the existence of the health insurance rebates, not only will the medical costs be a lot cheaper, but you will be able to save the money; what would have been necessary for medical bills can be used for other purposes instead. Whether it's a thousand dollars more for your children's college tuition, for your mortgage, or for other financial investments—it will surely be worth it.

Medical costs are expensive and they are bound to increase in price for the coming years. With the government's 30% rebate on your private health insurance, you will get back 30 cents for every dollar that you contribute to your premium, further allowing you to save a lot of money.

With all of this laid on the table, there's no reason why you shouldn't consider investing in a private health insurance which only seeks out the best for you and your family's future. For financial and health security, choose to invest in private health insurance. This site can help you with any inquiries regarding the kind of insurance you should choose depending on your needs.

Jessica Wilson 

Jessica is a professional health expert who works for some major health industry giants. She currently writes for Membersown and is dedicated to helping people learn more about health related topics along the journey. When she's not a health advocate, she enjoys some down time traveling or talking with family.

Nwokolo Collins

Hi, My name is Nwokolo Collins, I am a passionate health enthusiast, I write amazing health articles with sufficient humour.

13 comments to ''Health Insurance Rebates: What They Are and Why They're Important"

  1. This was a really informative post, I learned a lot about insurance. It's reminded me to check my own out.

    1. Thanks for the compliment. You should definitely check yours.

  2. Very insightful post. I definitely learned a lot about health insurance rebates. Thanks for sharing.

  3. Well saving more is a really great benefit. Who would not want that? Very interesting concept.

  4. Very informative post indeed. Health insurance is significant and should be a priority when government bodies compensate part of it.

  5. In fact we can save a lot of tax if we carefully plan our investments including taking a health insurance..We also have taken it!

  6. I am lucky to live in a country where health insurance is not an issue and it is provided by the national health system for free. I wouldn't imagine how hard it must be to worry every time you are sick that you don't have insurance and that the treatment must cost a fortune.

  7. It's very intresting and very informative! In the country where I live there are no rebates on health insurances.

  8. This comment has been removed by a blog administrator.

  9. I don't have a health insurance and you convinced me to get one. I always knew it was important but so expensive for me. I need to check my options.

  10. Reading this, I realize that I am so fortunate to be living in Canada. Most of our medical is paid for through taxes and affordable. And if you don't have benefits through work, you can also get a health and dental plan for really cheap too and see your regular doctors etc.

  11. My brother, aunt and cousins are all in the insurance line, so I really agree with the importance of insurance. Singapore's insurance are pretty well covered and expensive though.... so we get broke from that pretty much~


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