What are the benefits of private health insurance?

Over 11 million Australians, more than half the population, have private health insurance in addition to cover from Medicare.

In surveys by the Australian Bureau of Statistics, the main reasons people give for having private cover are to avoid hospital waiting lists, to have a choice of doctors in hospital, and for general peace of mind.

Also, the Commonwealth Government offers a number of "sticks and carrots" to encourage you to have private health cover, as follows:

• you get a rebate of at least 30% (more if you are over 65) of all your premiums for private hospital and "extras" cover
• you avoid a 1% Medicare Levy Surcharge payable when your taxable income is over $70,000 (single) or $140,000 (family), provided you have suitable hospital cover, and
• you establish an entry age that limits age-related premium loadings under Lifetime Health Cover, once you take out private hospital cover.