medicare surcharge

Of the three listed private hospital providers RHC, HSP and PHG, the latter will be affected the least by the raising of the Medicare surcharge income threshold. PHG operates solely in regional areas where not many people earn more than the old income threshold of $50K. In those areas, people who currently have private health insurance have it to enhance choice of hospital rather than to avoid the medicare surcharge and will retain it.

Also, PHG focuses on tree-change/sea-change areas where there are growing retiree/baby-boomer populations. Another reason why PHG will be insulated from any negative affects of new threshold.

In the capital cities, where there is more hospital choice and people are younger on average, the new Medicare surcharge income threshold of $100K for individuals and $150K for couples will encourage people earning less to drop out of private hospital insurance. That means RHC and HSP will be most affected by the new threshold.