50,000 self-funded retirees listen to the offer from Government
Key Points
The Commonwealth Seniors Health Card is for retirees that don’t qualify for an age pension.
A couple can save more than $5,300 and also be eligible for other government entitlements.
We recommend applying using the paper-based form (not via myGov) as an easy to make sure you get the card quickly - we have prepared a video to help.
The Government makes the income test look complicated, but there are easy shortcuts to work out if you are eligible.
You can also apply if your situation has suddenly changed - you just need to know which part of the form to fill out.
Even while you are waiting for your card to be issued, there are ways to track your spending on medicines to claim back later.
Holding a Commonwealth Seniors Health Card not only means help with medical and medicine costs, but also means the government can find you to offer help. Take this to mean you are identifiable as a self-funded retiree, and targeted payments could be coming your way.
50,000 more people became eligible for the card last year, and quickly applied for it. Make sure you apply if you are eligible
Making the most of government entitlements is an essential part of a retirement focussed financial planning service - and that is exactly what we offer.
Brendan Ryan CFP
0412 181 031
Need help with the form?
Watch the video for a step through of the form, and some useful shortcuts to save time.
(Make sure you maximise the size of the video to make the most of the information)
3 out of 10 Australians over 65 miss Government money to help with health costs
Many Australians may be eligible for help with health costs, but are missing out.
Complex rules, difficult forms and confusion on the actual benefits offered by the Commonwealth Seniors Health Card may have stopped you applying in the past. If you have been confused by the process or your eligibility, now is the time to take another look.
If you are approaching age pension age, it makes sense to be clear on what you are eligible for, and apply as soon as you can to make sure you make the most of what is available.
We think an efficient service to help you apply and make the most of support that is designed to make your life easier makes sense.
Save more than $5,300 per couple, every year.
Getting to the bottom of how much the card is worth will depend on how much you use PBS medications, how much your out-of-pocket medical costs are, and how much you visit a doctor.
A couple can save more than $5,200 per year in medical related costs.
Here is how the savings work:
Medications listed on the Pharmaceutical Benefits Scheme are $7.30 each, then free after 36 medicines in a year for CSHC holders. If you are taking 5 PBS medications in a month, you will save about $1, 360 per year. The savings are higher for those requiring more PBS medications.
The value of a lower Medicare Safety Net - means the government steps in with help after you have been left out of pocket $770, compared to $2, 414 for everybody else. This could mean a saving of up to $1, 314 in a year (each).
The value of more bulk billed visits to doctors - this is because GP’s get paid more to provide service to Commonwealth Seniors Health Card Holders - make sure you ask your GP whether they bulk bill Commonwealth Seniors Health Card Holders - they will often allow these appointments outside of peak hours - saving you money.
If you don’t spend much on medical help - chances are that you will in the future. Australian Productivity Commission Data from 2013 shows Australians over 74 are receiving very high rates of support for PBS medications and Medicare support.
Other benefits too.
The Commonwealth Seniors Heath Card offers more benefits - depending on where you live. Here are a few of my favourites:
In NSW you can apply for $200 to help with energy costs using the Seniors Energy Rebate . You can apply once every financial year.
The cost of an ambulance in NSW is free for Commonwealth Seniors Health Card holders. Before you go tearing up your ambulance cover - remember that different rules apply in different states. It’s very confusing.
The Regional Seniors Travel Card - was worth $250 a year for Commonwealth Seniors Health Card Holders - however it looks like this one is no longer in the mix.
And then there are “one-off” payments. $2,250 so far.
Commonwealth Seniors Health Card holders were eligible for $2,000 worth of support payments from the government due to the impact of the COVID-19.
More recently, card holders have been eligible for a “one off” $250 cost-of-living payment.
It seems that a Commonwealth Seniors Health Card is now a way for the government to identify self-funded retirees to offer help.
With an entitlements system getting more confusing, and with Governments keen to get the self-funded retiree votes, there will be more to come.
Do you qualify?
Before you get the card, there is a lot of information to provide, and getting to the bottom of test is confusing.
The thresholds are now indexed to be even higher
The rules around the income test can be confusing - this is why many Australians don’t have the card that should.
With expanded eligibility it makes sense to make the effort to understand if you are eligible for the card.
Make contact
Making the most of government entitlements is an important part of a retiree focussed financial planning service.
Call me on 0412 181 031, or email me to discuss your situation.
Not sure what your next move should be?
Why not start with a phone call?
I am always keen to hear people’s stories and find ways to help.
Brendan Ryan CFP
All of my clients have unique situations, but they mostly want the same thing - to get good value and security from the big companies that help them manage their savings, to make sure they get all they are entitled to from the government, and to have confidence in their plans.
More than 25 years experience in finance, and a deep understanding of retirement and government puts me in a strong position to help you get confident you are doing the right thing, and organised in your approach.
Call me on 0412 181 031 or send me an email.
Brendan Ryan CFP