Important information about changes to your cover

Changes to your Top Extras cover effective 1 April 2016 

Changes to your Essential Extras cover effective 1 April 2016

Changes to your StarterPak cover effective 1 April 2016

Changes to your CoreElect cover effective 1 April 2016

Contribution changes

Why is Teachers Health Fund (THF) increasing contribution rates?
Rate increases are driven by the rising cost of health services together with an increase in the number of health insurance members claiming for services.

We are committed to providing our members with competitively priced, great value health insurance and our pricing policy reflects the need to cover growth in claims as well as our operating costs.

Teachers Health Fund is a not-for-profit fund so any surplus generated is reinvested into the business to help improve the services and products provided to you.

When will I find out my new rate?

We are currently in the process of sending out rate rise communications to all our members.

Please note that if you have elected to receive communications electronically, you will receive your rate rise notification via email.

If I pay any contributions before 1 April 2016, will I be charged my old rate?
If you make an advance contribution payment by 30 March 2016 using a credit card or BPAY you will be charged at the current rate.

To make an advance payment, simply:
– Call 1300 728 588 or log into your online member services account to make a credit card payment. Please note, for over the phone payments, you will need your customer reference number which can be found on your online member services account
– Make a BPAY payment using the biller code 54072 and customer reference number which can be found on your online member services account

How far can I pay in advance to avoid the rate rise?
You can pay in advance up to 30 June 2017.

How will the rate changes affect me if I've made advance payments?
If you’ve already paid your contributions beyond 1 April 2016, your new contribution amount will apply when your next payment is due.

Do I need to change my direct debit or payroll deductions to the new contribution amount?
No. If you pay using direct debit or payroll, you don’t need to do anything. We will ensure your contribution amount is automatically changed effective 1 April 2016.

I pay by salary deduction. Will my payroll officer be notified of the price increase?
Yes. We will notify your payroll officer of your new contribution rate, however we suggest that you check your pay slips.

What products have been affected by the price increase?
All THF products have had a price increase this year.

Will there be any more changes to my cover this year?
Rate increases are regulated by the Federal Government and all funds review their contribution rates on 1 April every year.

This year, we’ve made some changes to our Mid Hospital and Extras covers to help increase the value of these products. Any other changes that apply to your cover are included in your rate rise notification.

Why should I bother keeping/continue paying for Private Health Insurance?
It’s hard to put a value on your health and the health of your family – it can be your most important asset. People take out private health insurance for peace of mind and to protect them from the unexpected. It can cover you for emergency ambulance transport and services that may not be covered by Medicare including physio, dental and optical. You can avoid lengthy public hospital waiting lists by being treated as a private patient in a public or private hospital. You can even choose your specialist, location, treatment and when you’re treated for various health concerns.

You can also take advantage of the Australian Government Rebate (if eligible) and don’t forget the tax savings! If you earn over $90K as a single or $180K as a couple/family and you don’t have private hospital cover, you will need to pay an additional 1-1.5% tax (depending on your income) at the end of the financial year.

Why should I stay with Teachers Health Fund?
THF was created by teachers for teachers over 60 years ago and now covers the lives of more than 290,000 teachers, education staff and their families around Australia.

THF also gives back to the community through sponsorship, scholarships and programs that care for the health and well-being of those in the education industry.

As the largest industry-based not-for-profit health fund, we are committed to provide great value health insurance to our members (not shareholders or overseas owners) by offering lower costs and generous benefits. For example, we paid 90 cents in every dollar for benefits claimed by members during the 2014/15 financial year. We were also recently recognised as Australia’s leading Private Health Insurance provider in the 2015 Roy Morgan Customer Satisfaction Awards.

Rebate changes

What is the rebate?
The Australian Government Rebate on Private Health Insurance is the amount paid by the Australian Government as an incentive for individuals to take out private health insurance.

It currently applies to all THF hospital, general treatment and ambulance products. The rebate amount depends on your age and assessable income and isn’t available for the Lifetime Health Cover loading portion of membership payments.

How do I claim my rebate?
The rebate can be claimed as a reduction to your health insurance premium or as a tax offset when you submit your annual tax return.

What’s changed?
The rebate is indexed each year on 1 April by the difference between CPI and the industry weighted average increase in premiums using a Government-calculated formula.

This means that each year the Government will limit the amount of rebate it pays to a proportion of the full premium (before any applicable LHC loading is applied). This means that each year as the rebate reduces, the proportion that you have to pay towards your premium increases.

What are the new rebate amounts?

Tier Income for Medicare levy surcharge purposes Age less than 65 Age 65-69 Age 70+
No tier Singles up to  $90,000; Couples/Families up to $180,000 26.791% 31.256% 35.722%
Tier 1 Singles $90,001 - 105,000; Couples/Families $180,001 - 210,000 17.861% 22.326% 26.971%
Tier 2 Singles $105,001 - 140,000; Couples/Families $210,001 - 280,000 8.930% 13.395% 17.861%
Tier 3 Singles more than $140,000; Couples/Families more than $280,000 0% 0% 0%

Benefit changes

For more details on the benefit changes to your product you can review these here.