DID YOU KNOW: Having a Commonwealth Seniors Health Card (CSHC) can save you around $2,500 yearly on health care costs.
In general, this includes:
| USE | Estimated Savings p.a. |
| Medicare Safety Net | $1,200 |
| Pharmaceutical Benefits Scheme | $1,300 |
Note: This doesn’t include the potential savings for bulk billing on GP appointments and additional benefits like free ambulance or travel card available in selected regions.
For more information on CSHC benefits, or to make a Commonwealth Seniors Health Card Application visit Retirement Essentials.
In the example above, a CSHC holder would save close to $2 500 per year on health care costs, and this does not take into account the potential to be bulk billed by GP.
In NSW the CSHC enables free Ambulance, and from July 1 2019, holders will be able to apply for an energy rebate of $200, and in regional areas, a travel card worth $250.
What are the benefits of a Commonwealth Seniors Health Card?
A CSHC entitles you to benefits including:
- Cheaper medicine for medications listed under the Pharmaceutical Benefits Scheme9
- Bulk billed doctor visits (check with your doctor if this applies – it’s not compulsory for them to offer bulk billed visits)
- A higher refund when your medical costs reach the Medicare Safety Net.
Pricing the exact benefit of a Commonwealth Seniors Health Card is going to depend on the individual use of Medicare and PBS Medicines.
In broad terms, consider that:
The Medicare Safety Net for CSHC kicks in at a lower level. Once out-of-pocket medical costs reach $680, Medicare will pay 80c in the dollar. For everyone else, this support happens when out-of-pocket spending gets above $2133. So CSHC holders will get an extra 80c back in the dollar for out-of-pocket expenses below $2133 and above $680. So there is a potential extra saving on out-of-pocket medical costs of $1,162.
For the Pharmaceutical Benefits Scheme, CSHC pay $6.50 for the first 60 PBS medications a year, and then medications are free. For everyone else, the rate is $40.30 per PBS medication, then the cost reduces to $6.50. For the purpose of this article, consider someone needing 5 PBS medications per month. A CSHC holder would have spent the limit of $390. Without this support, the PBS threshold kicks in at $1550.70, then scripts are $6.50. In this case the total cost is $1,690 – so the CSHC holder saves $1300.
Does the example above sound like you? Maybe your current health related spending means you will not benefit that much from the CSHC. However, this could easily change.
Australian Productivity Commission Data from 2013 shows Australians over 74 are receiving very high rates of support for PBS medications and Medicare support.
So if you don’t see much benefit from the CSHC now, it is likely there is value in having the card in the future. And there may be other reasons for having the card.
It’s complicated, but worth having it
In the example above, a CSHC holder would save close to $2 500 per year on health care costs, and this does not take into account the potential to be bulk billed by GP.
In NSW the CSHC enables free Ambulance, and from July 1 2019, holders will be able to apply for an energy rebate of $200, and in regional areas, a travel card worth $250.
It’s all part of the challenge of keeping organised in later life.
We can help.
I have just recently come across Retirement Essentials and am interested in learning more—–so I am reading your literature!
My wife & I each have a CHSC, but not eligible for any pension.
I noticed that in NSW the CHSC enables free ambulance & since
1/July 2019 holders are able to apply for an energy rebate of $200.00 annually and in Regional areas a travel card worth $250.00 p a.
Are like concessions available in Victoria?
I look forward to you response.
Hi Brendan,
Unfortunately Centrelink has not created a list of entitlements for each state – this is something you would have to look into separately by researching available concessions for seniors in Victoria and finding ones relevant to you and the Commonwealth Seniors Health Card.
If Centrelink publishes a list of concessions, we will be sure to make this available on our website and social media as well.
Many thanks
My husband has just retired. (68) I am still working (59). Are there any conditions for the Health Card. Is it asset tested etc.
Hi Kerry. There isn’t an asset test for the Commonwealth Seniors Health Card but there is an income test. You can check your eligibility here
Centrelink make it too difficult t apply for a Health Care Card
Please get this simplified
The income test was promised to be increased to $90k .
This was supposed to be by 1 july22
Still hasn’t happened!!
Is this a gov con??
Hi Paul. This is still subject to legislation which is currently in Parliament. We are expecting it to be passed imminently and will know the start date after that. The CSHC thresholds will become effective 7 days after the legislation receives Royal Assent
Centrelink cannot be trusted. I had a CSHC and was advised I no longer had to abide by the income thresh-hold. Accordingly I changed my investing procedures such that I did exceed the income thresh-hold. Several years later they informed me I should not have exceeded the income thresh-hold, took away my CSHC and asked me to pay back a heap of money. Lodged an appeal which was rejected. Now lodged another appeal with the Administrative Appeals Tribunal because at no time did Centrelink take into consideration the misleading advice I was given. However I do not hold little hope. Seems to me Centrelink is a law unto itself and cannot be held accountable for any misleading information it provides.
Hi, my husband made a mistake on his claim form for the CSHC. He stated that our income would be the same or higher than 21/22 tax year. This isn’t correct as I have stopped work (69) . There is no way we can correct this on line or get advice by phone. What can we do?
Appreciate your advice
HI Marcia, thank you for seeking our help! If you lodged a physical copy of the claim form We’d recommend re-completing the page(s) answered incorrectly and re-lodging it in person where you can explain the error and provide the correct copy. If you lodged your claim online then you will need to call Centrelink on 132 300 to explain the error and ask for it to be amended.