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NewsWhat the Year Holds in Higher Charges And How to Beat Them
What the Year Holds in Higher Charges And How to Beat Them

What the Year Holds in Higher Charges And How to Beat Them

Last updated by Chris Zinn on

The New Year always dawns with the news of government services thoughtfully jacking up fees and charges and altering the rules when we are least aware.

Post and pharmaceuticals costs have already changed and big ‘reforms’ are afoot for health insurance. Some pension rules have been tweaked, but the major eligibility changes are now just 12 months away.

Given forewarned is forearmed here are some tips around the changes which might effect you and what, if anything, you can do to avoid or at least mitigate any pain.

As this is going to be an election year, where policies around retirement incomes are going to be centre stage, it pays to know what’s happening.

First off the three Ps—Post, Pensions and Pharmaceuticals:

Post

Basic letter service stamps, as you probably know, have gone up from 70c to $1 while to keep the postie sustainable the speed has also dropped.

To get the same delivery deadlines we used to get for 70c will now involve buying a $1 stamp and a 50c priority label so whatever Australia Post claim about the service ‘evolving’ it’s costing substantially more for less.

Concession card holders can get up to 50 stamps a year at 60c but you have to register online! Tough for those who choose to use letters because they don’t have, or don’t like, computers.

It’s hard to get around as even the Christmas stamps, which will remain at 65c, might arouse suspicions is posted in July.

Best to plan and  post ahead and avoid that 50c speed surcharge or, as perhaps is the intent, prepare to use email even more.

Pensions

Only a small group is affected this year but for 300,000 more the big changes are on the horizon with less than 300 days to go.

For retired federal and state public servants, and those who get defined benefit superannuation pensions from larger companies, the income test for the age pension has changed.

Check with a reliable source to see if it changes your income.

In January next year the much larger changes over pension eligibility kick in and the FiftyUp Club will have more on this as the deadline looms.

The best advice here is to seek competent and trustworthy financial advice from a fee-for-service professional. Again I hope we’ll have more help for you in this area over the year.

Pharmaceuticals and the PBS

The good news is we can save money by buying certain painkillers and medicines over the counter as opposed to being charged even more as a concession card holder using the PBS or pharmaceutical benefits scheme.

The media has been dominated by fears of one particular  brand,  Panadol Osteo, which will go up 50% as a result of being delisted from the PBS.

Suffice to say with this painkiller there are generic and far lower cost alternative drugs which contain just the same active ingredients.

There’s also a $1 discount chemists can give for the first time on the co-payment patients make on their prescription medicines. For pensioners this means a buck saved on the $6.20 charge, and for the rest of us the same saving on $38.30.

It’s mainly the big discount chemist chains who’ll offer the discount. On this issue and the cost of the newly delisted medicines ask your pharmacist or check out government websites for independent advice.

Postscript

The final ‘P’ concerns private health insurance. There are plenty of reviews and reports which aim to change some of the ground rules around Medicare, rebates, policies etc.

The costs as we all know are going up and the government has less money meaning consumers will be expected to pay more.

The one thing we can be sure of is that in April premiums will be hiked by an amount far above the general rate of consumer prices.

At the same time the 30% rebate for health insurance, which has been means tested for some years, also falls in value to some 25% increasing the cost significantly.

It’s a bit late to wish you Happy New Year especially after a whole swag of news about higher costs and charges. But the idea behind The FiftyUp Club is we share useful information and also use our aggregated bargaining power to get better offers. You only have to join up or join in. We believe it’s worth it.

Originally posted on .

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Marilyn
Marilyn from QLD commented:

If people are unhappy with the government, then the best way is to give them a loud and clear message at the next election, or even before, to their local Member of Parliament. I've never heard of a government that is so willing to reduce the living standards of older people whilst having their "snouts in the trough" themselves. It is not the fault of the older generation that we have had at least four bad governments in a row who have let the country get to this state. Now it seems that it's the older generation who have caused this by receiving pensions, rebates etc, or "middle class welfare". This is just "elder bashing" in my view and is very prolific not only from the government but also from the media. This needs to stop and older people be valued for the contribution that they have made to their country over long working years. The medical insurance issue and reductions in coverage of Medicare are just another thorn in the side of older people and, again, government is not interested in doing anything about it. 

Warren
Warren from NSW commented:

Post, Pensions and Pharmaceuticals changes followed by your Postscript; they all seem quite logical changes to me. Not sure what the fuss is all about. Just go with the flow. 

Allan
Allan from WA commented:

In my humble opinion, the Federal Health Minister, irrespective of which political party holds office, is public enemy number 1 for us who choose to buy private health insurance. The Minister is the one person / office who approves premium increases for health insurers, when that person should and can say no premium increase, spend your own money if you have to meet increased business costs !!!!! In West Australia, we have the HBF, been around for donkeys years in fact over 50 years I can count, they boast they are a " not for profit service provider ", which makes interesting reading when we see the HBF paid $ 165 million for the building they work in, have the HBF logo on various public arena's, never stop telling us how good they are on prime time TV and print advertising, which even the non wary know how expensive that advertising is ( my experience is state boat show advertising ), always seem to be sponsoring some public event with the focal point of personal health and healthy lifestyle. Well as far as I'm concerned, if the HBF can afford all the afore mentioned, they certainly do not need a premium increase, they can spend their own money they seem to have an abundance of. There appears to be some 10 times more Health Insurers now than 30 - 40 - 50 years ago, that tells me, the additional health insurers are now cashing in on what the Federal Health Minister gives them via insurance premium increases. The last count, It is hard to find a sporting team / club who is not currently sponsored by a Health Insurer. 

Margaret
Margaret from NSW commented:

I agree with Dianne, we too are self funded have to live on interest much less than pension, I am appalled by the sneaky way all these changes have been installed are the pollies going to get a wage increase because of all the changes. Margaret from NSW 

Nicole
Nicole from QLD commented:

Joy Ann, I agree with you. 1) Politicians' wages and perks are way beyond what the country can afford - this must be reduced with immediate effect. 2) GST going up to 15% - unaffordable for many people. 3) Private Health Cover - becoming unaffordable. Why should we be made to pay a "gap" fee for operations etc. - and those that don't have private health care just get given their medical operations for free. 4) Time for the government to tighten their belts - that also goes for the Brisbane City Council - they should be ashamed of themselves for spending so much on fireworks, when our poor farmers are so in need of help to just survive! 

Dianne
Dianne from NSW commented:

The $2.50 seniors opal card is also going up to $9.00 in July if we don't protest about it before February. Please do something about this. We are self funded retirees who earn less than the pension each year and cannot afford $9.00 to go on public transport for the day. The Seniors health card should also be a reason to get the $2.50 fare. 

Someone
Someone from VIC commented:

Does anyone know where I may purchase Digesic for less then $75.00, was $25:00, but suburban Melbourne Chemisys have upped charge to $75 per 100 tablets; I require extra strength due to 14 surgeries to repair violent abuse from ex/H'bnd, am requiring Elbow replacements but won;t have as not viable. bj 

Cecilia
Cecilia from NSW commented:

I have had seven replacements and revision done the last three years and a spinal surgery, my husband broke his neck and because of having been in a hard collar now suffers from scoliosis of the spine. Both of us are in constant pain. We are age pensioner, both over 85. Panadol Osteo we preferred to Endone. This change affects us badly and we think it is rather unfair. Cecilia Hoppenjans 

Liz
Liz from ACT commented:

Although we have been affected with our pensions, the best place to start for free financial advice is Centrelink's Financial Advisor (initially). As they have all your information & can advise you accordingly. We found them extremely helpful. You must book for an appointment. 

patricia
patricia from NSW commented:

It is a disgrace that those paying private health cover for years , are then expected to pay a gap , while those with no health cove get surgery and hospital for free. What a joke . 

Gertraud
Gertraud from ACT replied to patricia:

Private health insurance is a CHOICE made by people wishing to have better accommodation in public hospitals or private rooms in private hospitals, choice of doctor, priority when it comes to elective surgery, etc, etc. People who do not choose to have private health cover still have to pay the Medicare Levy and, in many cases a surcharge. They often have to wait years for elective surgery, and are accommodated in multi-bed wards in public hospitals. As to the gap payment, that is based on commercial agreements between the health insurance providers and the hospital. Go and complain to them. 

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