Private health insurers are being investigated by the ACCC over potentially misleading claims
Private health insurers are being investigated by the ACCC over potentially misleading claims about the tax benefits of buying their policies
The consumer watchdog says promotions urging people to take out a private health insurance policy before June 30 may be preying on patients’ ignorance.
“The ‘save on tax’ claims promoted by many private health insurance companies and comparator websites may result in consumers rushing to purchase private health insurance to avoid a tax that most consumers don’t have to pay,” Australian Competition and Consumer Commission Chairman Rod Sims said.
“The ACCC considers that these companies are potentially misleading consumers and gaining an unfair competitive advantage by making representations that leverage off many consumers’ lack of knowledge about the application of the Medicare Levy Surcharge.”
Only individuals with a taxable income above $90,000 and couples on more than $180,000 would avoid the Medicare Levy Surcharge by purchasing an appropriate level of private health insurance.
Most Australian households thus do not save on tax by purchasing private health insurance.
“Competition and consumer issues in the health and medical sectors are an enforcement priority for the ACCC,” Mr Sims said.
“The ACCC is currently assessing some of the representations made by the health insurance industry and may take enforcement action against the more problematic claims or where businesses continue to make misleading ‘save on tax’ claims.”
