Hi Everyone,
We’re a family of three—myself, my wife, and our 10-month-old son. Our household income falls in the range of $216,001 to $288,000. Until recently, we held a comprehensive family health insurance plan with high coverage. However, due to financial strain and high premiums, I had to cancel it on June 11, 2024.
I have some ongoing health issues, so I need a private health insurance plan that provides extensive coverage. My wife, on the other hand, is in good health and only needs a basic plan. As a result, she opted for a basic health insurance plan with extras (but without hospital cover), and on the same day, I switched to an individual private health insurance plan that meets my specific health needs with a higher level of coverage. Effectively, I was covered by private health insurance for the entire financial year, though my wife had a 19-day gap without any private health cover.
I have a couple of questions:
Question 1: In our tax return for the last financial year, both my wife and I were charged the Medicare Levy Surcharge (MLS). I understand that my wife would need to pay this due to her coverage gap, but I’m confused about why I was also charged, given that I had continuous private health coverage for the whole financial year. Can anyone clarify?
Question 2: Given our different needs—me needing a more comprehensive policy and my wife needing only a basic plan—we’re struggling to find a family insurance provider that offers flexible coverage tailored to each individual. Would it be acceptable for us to hold separate private health insurance policies with different coverage levels? I’m concerned about affordability and can’t manage the premiums if we’re forced to have the same high level of coverage for both of us under one policy.
Thanks in advance for any insights!
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