Federal Budget 2021: Private health insurance loophole under review

There are changes afoot for GPs who may not bulk bill yet — and private health is about to get cheaper for many Aussies.

A loophole that dissuades people earning more than $90,000 a year from taking out private health insurance could be closed.

Workers who earn more than $90,000 as singles or more than $180,000 as families have to pay a higher Medicare levy if they don’t have health cover.

However, the penalty is no longer working because for many its cheaper to pay the penalty than buy health cover.

The government will review this measure and one possible outcome could be an increase in the tax slug.

A number of private health reforms have been looked at under the Federal Budget.

But the outcomes of the inquiry won’t be made public until after the next election.

It’s one of three key private health reforms revealed in the Federal Budget.

Another will see the cost of hip and knee replacements, cardiac and other devices slashed in a move that could cut health fund premiums.

Medical device prices will be set by an independent body and benchmarked against public hospital prices in a move funds say could reduce premiums.

News Corp Australia this week revealed Aussies are paying up to 210 per cent more than French patients for medical devices, including those made by Australian companies.

Health funds claim the move could save $500 million and slash premiums by around one per cent a year.

Health fund members could also face new out of pocket expenses if they use a private hospital that does not have a contract with their insurer with the government set to review mandated minimum payments funds must make to out of agreement hospitals.

The cost of hip and knee replacements will be reduced. Picture: iStock

People living in rural and remote in towns with a population of more than 5000 will benefit form new incentives to get their GP to bulk bill. Doctors will see their bulk billing incentive rise by 10-40 per cent depending on remoteness.

The budget will fund new drug and alcohol service to help people kick dangerous habits, more stillbirth autopsies will be funded and a $13.7 million program will try to prevent stillbirths.

More than $288 million will be spent on a new Medicare rebate for Transcranial Magnetic Stimulation therapy for patients with medication-resistant major depressive disorder

Proton Beam Therapy (PBT) will be funded by Medicare for paediatric and rare cancers

Medicare will fund pre-implantation genetic testing (PGT) of embryos for specific genetic or chromosomal abnormalities prior to IVF implantation.

With waiting lists for public dental care surging the federal government will spend $115.2 million over four years on extra public dental care for adults and children under the age of two.

Lung cancer patients stand to benefit from funding for five nurses who will provide support to patients and their families helping them co-ordinate their care.

A crackdown on radiology clinics that overcharge for MRI scans will save the government $107 million.