Australian Finance Podcast What do I do about my private health insurance?
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Mar 24, 2025 Dr. Steven Lu, a longevity expert and founder of Everlab, shares insights on navigating private health insurance in Australia. He reveals the history and evolution of private health cover, addressing how it can lower tax bills. The conversation highlights when PHI offers real value and warns of common pitfalls. Lu discusses the shift toward preventative health measures and stresses the importance of tailoring insurance to individual needs. He urges listeners to actively review their policies to ensure they align with personal health goals.
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History of PHI in Australia
- Private health insurance (PHI) take-up was high before Medicare (1984), then dropped sharply.
- Government incentives like the Medicare levy surcharge and rebates helped stabilize PHI around 40%.
Main Reason For PHI
- People primarily get PHI to avoid the Medicare levy surcharge, not necessarily for the coverage itself.
- Younger people often focus on perks like dental and glasses, not the core hospital cover.
Medicare Levy Surcharge
- Consider the Medicare levy surcharge when evaluating PHI.
- A basic policy might be cheaper than the surcharge, making it financially beneficial.