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Changes to the Medicare Levy Surcharge Thresholds

Bupa Australia Deputy Managing Director Richard Bowden said today the company accepted the Parliament's decision to approve revised increases to the Medicare Levy Surcharge thresholds to $70,000 for singles, and $140,000 for families.

"Given the debate around the thresholds may have caused confusion, Bupa Australia wishes to reassure its customers who may have dropped their private health insurance cover since 1 July 2008 in anticipation of higher thresholds, that they will be welcomed back immediately and will be able to resume their membership without having to re-serve waiting periods," Mr Bowden said.

"While we note these increases are lower than those originally proposed, we remain concerned about the impact the measure will have on people who are likely to face a longer wait for treatment through the already-strained public hospital system," Mr Bowden said.

Mr Bowden said the expected impact of the threshold increases on public hospital waiting lists served as a strong reminder to Australians of the importance and value of having private health insurance – avoiding long public hospital waiting lists, providing choice in health care, and having the peace of mind that comes with knowing that they can access the high quality health care services that they need, when and where they need them.

Bupa Australia also has a proven track record in delivering:

  • Lower than industry-average premium increases for each of the past seven years
  • Higher gap coverage than other major funds
  • Lower than industry average management expense ratios

"The recent interest rate cut by the Reserve Bank of Australia and the Australian Government's significant financial support package for low income earners will also help improve the capacity of customers to maintain their private health insurance," Mr Bowden said.

"Bupa Australia welcomes the Government's continued commitment to maintaining a well-balanced public and private health system and the retention of Lifetime Health Cover and the 30%, 35% and 40% private health insurance tax rebates," Mr Bowden said. "We look forward to continuing to work with the Government, the Opposition and the Senate on measures to ensure private health insurance remains affordable and of significant value to our customers, and to the wider Australian health sector." Bupa Australia supports around 3 million Australians with their health care needs through our trusted brands - MBF, HBA, and Mutual Community.

Last updated: 16-10-08

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