Explain how government policies encourage Australians to take up private health insurance. (4 marks)
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- Government rebates provide financial incentives for private health insurance by reducing premium costs through income-tested rebates.
- The reason for the Medicare levy surcharge is to encourage higher income earners to purchase private insurance, as those earning above threshold amounts pay additional tax without appropriate hospital cover.
- This creates financial pressure on wealthy Australians because avoiding the surcharge makes private insurance more cost-effective than paying extra tax.
- The lifetime health cover incentive ensures people join insurance funds early by offering lower premiums for those maintaining hospital cover from a young age.
- Consequently, these combined policies result in reduced burden on public hospitals while encouraging Australians to take personal responsibility for their healthcare costs.
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- Government rebates provide financial incentives for private health insurance by reducing premium costs through income-tested rebates.
- The reason for the Medicare levy surcharge is to encourage higher income earners to purchase private insurance, as those earning above threshold amounts pay additional tax without appropriate hospital cover.
- This creates financial pressure on wealthy Australians because avoiding the surcharge makes private insurance more cost-effective than paying extra tax.
- The lifetime health cover incentive ensures people join insurance funds early by offering lower premiums for those maintaining hospital cover from a young age.
- Consequently, these combined policies result in reduced burden on public hospitals while encouraging Australians to take personal responsibility for their healthcare costs.