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Private health insurance may cover some of the health care costs that Medicare doesn't.

What private health insurance covers

What and how much your private health insurance will pay for will depend on your health insurance policy.

You can choose a policy that offers hospital cover, extras cover, or combines both.

Private health insurance may not pay for some types of care, these are generally covered by Medicare. Find out more about private health insurance and Medicare on the Services Australia website.

Find out about the different types of health insurance cover and how to choose the right provider for you. These links will take you away from our website.

Medicare and private health insurance for tax purposes

Private health insurance rebates

The private health insurance rebate is an amount the government contributes towards the cost of your health insurance premiums. The amount of the rebate you get depends on how much you earn. If you have a higher income, your rebate may be reduced.

Find out more about the private health insurance rebate on the Australian Taxation Office website.

The Medicare Levy Surcharge

Having private health insurance may mean you don’t need to pay the Medicare levy surcharge (MLS). The levy amount is based on:

  • taxable income
  • total reportable fringe benefits
  • any amount on which family trust distribution tax has been paid.

If you take out the right level of private patient hospital cover, you can avoid paying this surcharge.

Find out more about the MLS on the Australian Taxation Office website.