High-income earners over $50,000 for individuals and $100, 000 for families pay a Medicare Levy Surcharge of 1 %( $500 and $1000 respectively). High-income earners can be exempted from the surcharge if they have private insurance, insurance companies exploit this and provide policies with annual costs under the respective $500 and $1000. The insurance policies do not stop high-income earners from using public health care, only from paying the surcharge.