The private health insurance hack that could cut your premium by $650 |
The private health insurance hack that could cut your premium by $650
March 28, 2026 — 5:01am
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On Wednesday, along with just about every other cost in your life, private health premiums go up. The average increase – at 4.41 per cent – is the biggest in almost 10 years.
And some policies will increase far more, with Choice analysis finding “Gold” policies across the largest funds will jump a typical 13.3 per cent.
Now, a couple of columns ago, I wrote how private health proved priceless for me in helping me beat breast cancer five years ago – but it’s difficult to ignore that it’s getting darned pricey. So, instead of ditching your cover, try this tactic that’s guaranteed to cut its cost.
Several years ago, the government upped the excess you are allowed to have and still be exempt from the Medicare Levy Surcharge. Remember, this is a tax penalty of up to 1.5 per cent of your taxable income, if you don’t hold at least basic hospital cover, and earn more than $101,000 as a single or $202,000, as a couple/family.
While until 2019 you used to need an excess below $500, for singles, and $1000, for couples/families, today it’s $750 and $1500 respectively. And that makes a big difference to the premiums you pay – still with no tax penalty.
A quick........