AMA proposes health savings scheme for millennials

This is to encourage them to obtain and retain their private health insurance.

The Australian Medical Association (AMA) has proposed a new health savings scheme to give millennials an incentive to obtain and retain their private health insurance.

The scheme is set out in the AMA’s new position statement on the Health Savings Account, which aims to help patients meet out-of-pocket costs that are not covered by public funding or private health insurance.

According to AMA, the Health Savings Account would be voluntary, operate in the same way as contributory superannuation accounts, and encourage people to make provision for their future health costs.

A recent survey by the Australian Taxation Office said that more than 327,000 Australians are paying the Medicare Levy Surcharge (MLS) rather than taking out private health insurance. With wages continually increasing, more young Australians will reach the MLS threshold of A$90k where they will be forced to pay 1% tax if they do not have private health insurance.

“Young people often weigh up the cost of the MLS versus paying private health insurance to meet short-term costs,” the AMA said.