Health Insurance

Tax and Health Insurance


Step 1

Who may face extra tax or be affected by government initiatives?

The Australian Government has introduced a number of initiatives to encourage people to take out private Hospital cover in order to reduce the pressure on the public health system. If you fall into one of the categories below, having CUA Health Hospital Cover may benefit your finances as well as your health. As well as saving on tax, the benefits of health insurance include:

  • Shorter wait times
  • Greater control of who treats you and where
  • Peace of mind you will be covered
If you earn more than $90,000 a year as a single or $180,000 as a couple/family/single parent

If you don’t have private hospital cover, you may have to pay the ‘Medicare Levy Surcharge’ of an additional 1% to 1.5% of your income.

This is on top of the mandatory 2% you already pay as the ‘Medicare Levy’ (unless you’re one of the few exempt).

If you’re over 31 years old

Lifetime Health Cover’ is a government initiative designed to encourage people to take out private hospital insurance earlier in life and maintain it.

People who delay taking out cover will pay a 2% loading on top of their premium for every year they’re aged over 30 when they first take out private hospital cover.

If you have Private Hospital Cover

The Australian Government offers a rebate to help cover your premium. Rebates are calculated based on your income and age.

What's the difference between:
Each year, Australian residents pay a ‘Medicare Levy’ of 2% of their taxable income. This gives us our Medicare card, access to the public health system and rebates back from GP visits etc. The ‘Medicare Levy Surcharge’ is an additional 1% to 1.5% charged to high-income earners without private hospital cover.
Public hospitals are government owned and operated, and service the public through Medicare. Because of the demand on public hospitals, there can be lengthy waiting lists for surgeries and patients generally have to share a room with others. Private hospitals are run by independent organisations and give you control over who treats you and when.

Step 2

How could I benefit financially from having health insurance?

If you do fall into the categories of being a high-income earner or over the age of 31, take a look at the following examples to get an understanding of how you could be affected.

Don’t pay the Medicare Levy Surcharge

If you are single and earn $110,000p.a. and don’t have private hospital cover, you’ll be paying an additional $1,375 towards Medicare each year.

Should you fall sick or get injured, you’ll still be treated exactly the same in public hospitals.

Don’t pay Lifetime Health Cover loading

The loading is an additional 2% on the cost of your premium for every year you do not have private hospital cover after the age of 30 (capped at 70%).

If you took out hospital cover for the first time at the age of 40, you will pay 20% more for your hospital cover than someone who took it out at the age of 30. You’ll have to continue paying the 20% more for 10 years before the loading is removed.

Get the Private Health Insurance Rebate

Depending on your age and income you could get a government rebate towards your private hospital and Extras cover.

Get a quote for CUA Health Hospital and Extras Cover and the rebate will be factored into your premium based on your circumstances.

Fast FAQ
The government only requires you to have private hospital cover (not extras). All CUA Health Hospital Cover options provide sufficient coverage to satisfy government criteria for you not to pay the surcharge.

Step 3

What cover is right for me?

It really depends on you and your family. With all CUA Health Hospital cover options, you’ll remain fully eligible for the Medicare Levy Surcharge exemption, but the benefits of health insurance are more than just the tax saving should you ever get sick or injured.

Have a think about your medical history, your current health and anything that may affect you in the future. Are you likely to need to go into hospital in the near future? And if something was to happen to you, how much of a co-payment or excess could you afford to pay? Then think about Extras and whether you need cover for things like optical, physio or dental.

What's what?
An excess is an upfront amount that you agree to pay towards the cost of hospital treatment, in exchange for lower premium costs. The excess does not apply to day surgery or dependant children.

Choose your Hospital & Extras cover

Find the policy that's right for you - you can choose Hospital cover, Extras cover or a combination of both.

Hospital cover

Top cover
Low cover

Extras cover

Top cover
Low cover

You have selected:


Hospital cover

Extras cover

# The quoted price assumes you live in Queensland and you’ll receive 26.791% Australian Government Rebate for Private Health Insurance. Hospital cover prices are based on no Lifetime Health Cover Loading and an excess of $500 per person per calendar year (excluding dependants).

Important information Show content

*First month free is available only to new policy holders who join via Credit Union Australia Limited. ABN: 44 087 650 959 (CUA) directly.

Please read the information carefully and retain for your future reference. If you join CUA Health, confirmation of your cover and policy information will be sent to you. If you change your mind CUA Health provides a cooling off period of 30 days from the start date of your policy. For more information including Code of Conduct and Complaints resolution refer to information for policy holders.

CUA Health insurance is provided by CUA Health Ltd 98 098 685 459 (CHL) which is not an authorised deposit-taking institution. While CUA Health Insurance may be distributed by Credit Union Australia Ltd ABN 44 087 650 959 (CUA), CUA is not liable for this product and does not stand behind CHL.

It’s important to know that we only pay a benefit for services performed by private practitioners in a private practice, provided their associations and services are recognised by us. If you’re unsure if the provider you have selected, or service you require is covered under your policy, please contact CUA Health for confirmation. The items, limits and benefits are provided as a general guide only. Please call us if any further information is required. Calendar year limits cover the period 1 January to 31 December each year.

When changing health insurers, Extras benefits paid by your old health fund will be counted towards your annual limits in your first year of membership with us.

Benefit limitation periods

During the first 24 months from joining and after waiting periods have been served, benefits paid for these treatments will be limited to the same amount you would receive in a public hospital for the same treatment. After 24 months from joining you will be eligible for the full benefits under the policy.

Medical costs

The medical charge is the cost for any services performed by doctors or specialists. This includes, but is not limited to – surgeons, anaesthetists, pathologists and assistant surgeons. Medicare sets an amount payable toward the medical costs, called the Medicare schedule fee. Medicare pays 75% of the schedule fee and CUA Health pays the remaining 25%. If the doctor or specialist chooses to charge above the schedule fee, then the difference is paid by you, unless your doctor or specialist chooses to participate in CUA Health’s Access gap cover scheme – see below for more info.

Access gap cover scheme

The Access Gap Cover Scheme will reduce or in some instances eliminate your out-of-pocket expenses for specialist care you receive while in hospital.

Doctors and specialists electing to participate in the Access Gap Cover Scheme can bill CUA Health directly. So, not only does your hospital treatment cost you less, but the billing system is made easier for you too.

Access to a complete list of doctors and specialists participating in the Access Gap Cover Scheme is available here. If your doctor or specialist chooses to use the Scheme, you will either:

  • have no out-of-pocket expenses, or
  • be provided with an estimate of out-of-pocket expenses before your treatment

Your doctor or specialist may choose to use the Scheme on a patient-by-patient basis. Of course, whether or not your doctor or specialist participates in the Access Gap Cover Scheme will not change the relationship you have with him or her, or affect the treatment you receive.

Excess payment

Excess: An upfront amount that you agree to pay towards the cost of hospital treatment, in exchange for lower premiums. For example, if you have Premium Hospital cover with $250 excess, and require hospital treatment you’ll pay $250 per person, per calendar year. This does not apply to dependants listed on the policy.

Agreement hospitals

CUA Health has agreements with the majority of private hospitals and day surgeries. If your hospital or day surgery doesn’t have an agreement with CUA Health, you may be subject to large out-of-pocket expenses, in addition to any excess or co-payment. Please check with your hospital prior to admission. Access to a complete list of agreement hospitals is available here.