- CSA and Private Health Funds – Should you join a private health fund or not?
- By Joh Flanagan
- Non-Custodial Parents Party (Equal Parenting)
- 05/02/2009 Make a Comment
- Contributed by: JohnnyBgood ( 6 articles in 2009 )
AHM (Australian Health Management – previously the Government Employees Health Fund) and Medibank Private have merged. As a result of the demutualisation of AHM, members of AHM will receive refunds in the order of a few hundred to a few thousand dollars.
One of our party members has had $4,000 intercepted by the Child Support Agency. This is for payment of outstanding child support.
The letter to this effect from the CSA was dated 16 Jan 2009 and was received one week later. The member was advised that the interception action had been carried out 2 weeks prior to the date of the letter (presumably to prevent any complaint being made).
No one disagrees that child support should be payable. However what is significant about this action is that:
* The outstanding child support was as a result of the member being given a deemed income, in the first instance. Therefore the member did not have a normal income to pay the child support in large amounts.
* The member had an existing payment schedule set in place. This was by written agreement with the CSA. It had been working for some time.
* No discussion was held with the member or prior notice was given to the member to ascertain his present financial circumstances (e.g. one of his daughters had come back to stay with him).
* The CSA did not ask the payee whether or not she was happy with the previous payment arrangement. In fact, she was happy with the previous arrangement. The payee preferred the smaller payments on a regular basis. This is because it did not impact on Family Tax benefit payments. As it is now the payee will loose $2,000 in deductions on Family Tax benefit payments already made.
* The CSA has advised the member in writing that they will not accept a complaint. This is because there is no legislative requirement for them to do so.
According to an earlier newspaper article below dated 14 June 2008, the CSA has taken similar action previously. This was when the Medical Benefits Fund (MBF) merged with Bupa Australia.
It should be noted that the CSA have the legislative power to intercept all hospital and medical refunds generally. The only reason that they have not done this to-date is due to the administrative work involved.
Therefore one has to consider whether it is worthwhile having private health insurance at all.
EXTRACT FROM AN EARLIER NEWSPAPER ARTICLE IN THE MELBOURNE AGE ON THE SAME ISSUE (BUT DIFFERENT HEALTH FUNDS)
To view article Click Here
One of our party members has had $4,000 intercepted by the Child Support Agency. This is for payment of outstanding child support.
The letter to this effect from the CSA was dated 16 Jan 2009 and was received one week later. The member was advised that the interception action had been carried out 2 weeks prior to the date of the letter (presumably to prevent any complaint being made).
No one disagrees that child support should be payable. However what is significant about this action is that:
* The outstanding child support was as a result of the member being given a deemed income, in the first instance. Therefore the member did not have a normal income to pay the child support in large amounts.
* The member had an existing payment schedule set in place. This was by written agreement with the CSA. It had been working for some time.
* No discussion was held with the member or prior notice was given to the member to ascertain his present financial circumstances (e.g. one of his daughters had come back to stay with him).
* The CSA did not ask the payee whether or not she was happy with the previous payment arrangement. In fact, she was happy with the previous arrangement. The payee preferred the smaller payments on a regular basis. This is because it did not impact on Family Tax benefit payments. As it is now the payee will loose $2,000 in deductions on Family Tax benefit payments already made.
* The CSA has advised the member in writing that they will not accept a complaint. This is because there is no legislative requirement for them to do so.
According to an earlier newspaper article below dated 14 June 2008, the CSA has taken similar action previously. This was when the Medical Benefits Fund (MBF) merged with Bupa Australia.
It should be noted that the CSA have the legislative power to intercept all hospital and medical refunds generally. The only reason that they have not done this to-date is due to the administrative work involved.
Therefore one has to consider whether it is worthwhile having private health insurance at all.
EXTRACT FROM AN EARLIER NEWSPAPER ARTICLE IN THE MELBOURNE AGE ON THE SAME ISSUE (BUT DIFFERENT HEALTH FUNDS)
To view article Click Here
Source: https://www.ncpp.xisle.info
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