Doctor ripped off by $1500 on Health Insurance

This story of a South Coast doctor shows why it’s smart to shop around no matter who you are.

Even doctors can be brazenly overcharged by $1500 a year on Health Insurance, as a story from the South Coast Daily Register showed.^

Nowra doctor Paul Thesinger decided to compare his health insurance to what else was out there and was shocked by what he found.

Paul’s own health insurance provider had the same coverage he was receiving under a different name and at a lower cost by $130 a month.

The middle of the year is a peak time for Health Insurance switching because of the tax deadline that kicks in at the end of June. There are two aspects to this tax deadline:


If you don’t have hospital cover by June 30, you could pay from 1% to 1.5% of your income in extra tax if your taxable income is over a certain threshold.

The current cut-off is $90,000 a year for singles or over $180,000 a year for couples.

The levy you pay depends upon your income bracket (which also determines your government rebate on premiums).

There is more info at this link.


If you do not have hospital cover with an Australian registered health fund on your ‘Lifetime Health Cover base day’ and then decide to take out hospital cover later in life, you will pay a 2% loading on top of your premium for every year you are aged over 30, explains.

If you were 31 or older when LHC started on 1 July 2000, your ‘Lifetime Health Cover base day’ is 1st of July, 2000.

If you’ve turned 31 since LHC started, your ‘Lifetime Health Cover base day’ is the 1st of July following your 31st birthday.

For example, if you take out hospital cover at age 40 you will pay 20% more than someone who first took out hospital cover at age 30. The maximum loading is 70%.

Once you have paid a LHC loading on your private hospital insurance for 10 continuous years, the loading is removed.

9Saver Tip: You can use these Lifetime Health Cover calculators to find out if you need to pay the LHC loading.

* In highlighting particular offers we are not making specific recommendations as this article does not cover all available products and may not compare all features relevant to you. Any advice provided is general in nature and does not take account of your needs, objectives or financial situation. Individuals should consider their own circumstances, and if in doubt seek appropriate advice, before proceeding.