Pre paying private health insurance

[devank]

Plus I think even if we get in on the 30% rebate now, the tax man is going to catch you out when you lodge your 12/13 tax anyhow.... because it is all assessed in your tax anyhow on what rebate level you should of been claiming for that 12 month period, so if you claim your 30% rebate now, and they say no you earnt X amount so therefore your on tier 1/2/3 there for you owe us money as you should of had 20% 10% or no rebate.

I'm not sure. We are committing to something based on the current rules and regulations. They can't simply change the rule and say no you shouldn't have done that.
Remember many terrorists escaped simply because there were certain laws in place when they committed their crime. May be it is not a good analogy

 

[delfredo]

The tax man has already thought about this and ways for people to dodge tax and ways for them to get their money back!

Nobody is dodging anyone. ATO has said they will allow prepayment before 1 July 2012 for FY13 so that the new rules will not apply. It applies only to premiums paid from 1 July 2012 onwards.

 

[itinerantotter]

I called up Medibank Private and obtained the premium amount that I need to pay to go up to 31 December 2012. I've been told to just pay that via their website (enter the amount and credit card details) or use BPay. Is everyone doing this? How would I know that they will consider this as a prepayment, and not an overpayment of my existing monthly payments?

This is why I asked them to send me an invoice, delfredo. Clear and unambiguous.

cheers

 

[ozmale42]

Seems a few of the funds (Medibank Private and BUPA being those that I know of) are offering a free month cover to switch over.

Me? I'm moving from HCF top hospital cover ($250 excess) plus Multicover (the name they call their extras cover) at a cost of $155 per month single to BUPA's top hospital cover with $500 excess without extras for $88 per month and pay 12 months in advance and get on month free - total cost of $968, and a saving of $892.00. I'll then reassess the positiion in a years time.

Needless to say i'm getting all my dental and optical visits done before 30 June at which time I will dump my extras cover.

 

[boomtown]

Just prepaid family of four for 18 months - 31 December 2013. 5800 bucks ouchbut would have been about 7k without prepayment.

 

[7DD4]

Family of 4 twelve months $1970

Basic hospital

Extras

 

[Crabnet]

Just make sure that you have the cover that you need during the prepaid period because.
"HEALTH insurance customers who prepay their premiums to beat means-testing of the federal government rebate will be penalised if they change even the smallest details of their cover. A change of mind about the type of cover required means the prepaid policy would be cancelled, under the Private Health Insurance Act, and a new one issued under the new rebate system."

http://www.theage.com.au/national/prepaid-savings-may-have-hefty-cost-20120616-20h4i.html#ixzz1xxzmFvwZ

 

[tvadera]

Hi,

So what are the consequences if I pre pay in advance for a year till 30 June 2013 and then make changes to the cover say in Mar 2013 (i.e. add some extras or drop some extras)

So would the new rebate be applied when I make changes to the cover? say in Mar 2013. Would the Private health insurance company return the pre payment for 3 months (Mar-june) and then start charging me new premiums from Mar - June 2013

OR

If any change is made to the cover say in Mar 2013, new rebate is applied from july 2012-june 2013 and hence I would have pay top up for 9 months + new premiums for 3 months.. If this is the case then it defeats the purpose of pre payment, because any changes you make to the cover during any pre-payment period wipes out the prepayment and resets the cycle from prepayment start date rather than actual cover change date.

Bit confused?

Regards,
TV

 

[pennyk]

Plus I think even if we get in on the 30% rebate now, the tax man is going to catch you out when you lodge your 12/13 tax anyhow.... The tax man has already thought about this and ways for people to dodge tax and ways for them to get their money back!

this is my concern and why we've been holding back from pre-paying... but we've decided to go ahead, although tomorrow is the last day we can do that.

Nobody is dodging anyone. ATO has said they will allow prepayment before 1 July 2012 for FY13 so that the new rules will not apply. It applies only to premiums paid from 1 July 2012 onwards.

Is that on the ATO website somewhere...... it would put my mind at ease if I could see it in writing somewhere "formal"!!

If I pay on the website, do i just pay 12 x monthly premium? There is nowhere to calculate the premium on HCF website.

 

[monalisa]

this is my concern and why we've been holding back from pre-paying... but we've decided to go ahead, although tomorrow is the last day we can do that.



Is that on the ATO website somewhere...... it would put my mind at ease if I could see it in writing somewhere "formal"!!

If I pay on the website, do i just pay 12 x monthly premium? There is nowhere to calculate the premium on HCF website.

Here's the link penny, which talks about claiming offset in 2012 tax return for future year payments:

http://www.ato.gov.au/corporate/content.aspx?menuid=52774&doc=/content/00233246.htm&page=3&H3

 

[big_head]

I just prepaid Australian Unity, 18 months cost ~5000 upfront, or ~6800 if i didn't prepay. A no brainer really.

As for changes, the lady i spoke to said that any changes will just alter the date paid up to, either forward or back. Basically, by prepaying the 30% rebate has been locked in for the sum of money paid, if i upgrade my cover, my prepaid date moves forward etc.