Australia is a combination of a quid pro quo system between a public and private healthcare and gives the opportunity to citizens and residents to choose where they would go for their medical checks. In essence, while Medicare offers (for some things) free or subsidised health care, private health insurance gives added coverage and benefits. This guide explains how private health insurance works in Australia, how it would benefit you and whether or not it’s a good idea.
Who needs Private Health Insurance in Australia?
In Australia, private health insurance is used to pay for treatment beyond what Medicare (the state’s universalized taxpayer health care system) covers. By allowing people to be treated as private patients in private and public hospitals, they have a higher level of control over their healthcare decisions. The policy you choose will determine how much coverage and what kind of services you receive.
In order to get private health insurance you have to buy a policy from a registered health insurer, and pay regular premiums. Private health insurance in Australia is community rated, unlike car or home insurance. That means everyone who has the same policy will pay the same price, regardless of your age, gender or health status.
Private Health Insurance: Benefits
A number of the main benefits of private health insurance is including extra cover. Depending on the policy, it can cover some or all of the following:
1. Treatment in public or private hospitals:
You are more likely to have more control over your treatment if you are treated in private hospital and can choose your doctor. Medicare will pay part of the doctor’s fees; your insurer will pay part of the hospital costs.
Health services not covered by Medicare: In addition, it may cover physiotherapist, dental and optical care that Medicare does not include.
Faster access to medical services: By using private health insurance you might be quicker to hospital services than you might be on public health waiting lists.
2. Tax Benefits and Rebates
Lower taxes: But if you buy private hospital cover, you can avoid paying the Medicare levy surcharge. If you’re an individual, you also have to pay this additional tax of up to 1.5% of your income if you’re above a certain threshold and don’t have private hospital cover.
Private Health Insurance Rebate: Depending on your income, the Australian government may offer you a rebate. The rebate will help reduce premiums or be an offset against your annual tax bill.
3. LHC The initiative of Lifetime Health Cover:
LHC) was introduced by the Australian Government so that people buy private health insurance at a younger age. By taking out hospital cover before you’re 31, you won’t pay higher premiums later on in life. But you will pay higher premiums for the next 10 years, if you don’t take out hospital cover until you are more than 31 years old.
Private Health Insurance for Who?
Australia does not compel ‘private’ health insurance, but it comes with many advantages. It has been selected as most people prefer it for its greater coverage and flexibility. Private health insurance is community rated so that health insurers cannot refuse to take you as an insured or charge you more for being older than you are.
Overseas Visitors — Special Considerations
It’s highly recommended in Australia for your temporary visa to take private health insurance. For instance international students can choose Overseas Student Health Cover (OSHC) to be able to access medical services. Private health insurance known as OSHC is one form of insurance that will help pay your medical costs if you decide to stay in Australia.
Public Health Care and How Private Health Insurance Works
Australia’s public healthcare system provides necessary healthcare for the Australian population, but private health insurance complements it to enhance the health care option. Here’s how private health insurance complements public healthcare services:
In-hospital services: Being a private patient gives you a choice in your hospital, doctor and specialist. The hospital costs will be covered some or all by your insurer and the doctor’s fees will have been paid by Medicare.
Out-of-hospital services: Generally speaking, Medicare is used to pay for many out of hospital services like GPs or diagnostic tests, but provides coverage for many other out of hospital services that are not all covered by Medicare, for instance dental care, physiotherapy and optical services.
What Actually Gets Covered by Private Health Insurance?
There are different private health insurances that can greatly differ about coverage. Here are some of the key services and treatments that may be covered:
Hospital Services: As a private patient it covers the cost of treatment in all public and private hospitals.
Extras (General Treatment): These services don’t include physiotherapy, dental treatment or optical services, which are other services the council provides under these rules, but they are not services covered by Medicare.
Ambulance Cover: Some ambulance services are covered on private health insurance policies under some states.
Prosthetics: Prosthetic device coverage including, depending on the policy, coverage for pacemakers, artificial limbs and joint replacements.
The Right Private Health Insurance Policies
When selecting a private health insurance policy, it’s essential to consider the following factors:
Level of Cover: Basic hospital cover to comprehensive packages that include all sorts of extras, such as dental and optical services, are all options for policies.
Cost:
The level of coverage and the insurer all play a part in how much you may pay for private health insurance premiums. It is recommended that you compare various providers that offer policies to suit your purse and use.
Excess:
However, some policies have an excess or co payment (amount you pay upfront when having the treatment). And when you calculate a premium, do not forget to take this into account.
Conclusion
The role of private health insurance in Australia is a valuable safety net, yielding more choice and faster access to healthcare services. Private health insurance can help on both sides: if you want to optimize your health experience by avoiding long waiting times in the public system, or you want to be able to get hold of services that Medicare doesn’t cover. As the benefits of life and health cover incentives and tax rebates, it is an option for many Australians. Don’t rest on the price alone as policies can vary massively in the coverage they provide and never compare policies without first ensuring that you qualify for any government rebates or discounts.
