Private health insurance in Australia
Private Health Care cover is a popular product in Australia. Many citizens and permanent residents supplement the cover provided under the Australian Government national program (Medicare) with various levels of private insurance, providing additional protection from unforeseen medical expenses.
Enrolment on Medicare is only available to Australian citizens and permanent residents. Restricted Medicare enrolment is also available to citizens from countries with whom Australia has entered into a Reciprocal Health Care Agreement.
Applicants for certain temporary residence visas, including the popular Subclass 457 Temporary (Long Stay) Business Visa and Student Visa categories, are required to provide evidence to the Department of Immigration and Citizenship (DIAC) that they have adequate private health care cover for the duration of their stay in Australia as part of their visa application. Travel insurance does not meet the criteria of adequate cover and therefore applicants are required to take out an approved policy prior to their arrival in Australia.
If you are a resident or an immigrant with permanent resident status and are eligible for Medicare, you can choose private health insurance products from more than 40 registered organisations. The Federal Government also offers a 30% rebate on private health premiums (this is payable in the form of a reduced monthly premium).
Extras cover
You can choose to purchase ancillary cover, also known as extras, that may offer you cover for services out of hospital that are generally not provided under Medicare. These can include:
- Dental treatment
- Ambulance
- Chiropractic treatment
- Home nursing
- Podiatry
- Physiotherapy
- Occupational therapy
- Speech therapy
- Glasses and contact lenses
Factors to consider
If you are considering taking out private health insurance, you should be aware of the following:
• The Private Health Insurance Rebate – If you are eligible for Medicare and have a complying health insurance policy, this rebate will give you back 30% of the total cost of your private health insurance in the form of a reduced monthly premium (and sometimes more, depending on your age).
• The Medicare Levy Surcharge – A 1% Medicare Levy surcharge is imposed on people who earn over a certain income threshold and do not have private hospital insurance.
• Lifetime Health Cover – Lifetime Health Cover (LHC) is a financial loading that may be payable on top of the basic premium for private hospital cover. To avoid the LHC loading, you must purchase hospital cover from a registered insurer before your LHC deadline expires (this will depend on your age when you arrive in Australia).
When comparing and choosing your policy, always be sure to ask what is excluded. Private health cover often excludes pre-existing conditions and specific procedures such as plastic surgery, and waiting periods may apply for specific types of claims including obstetrics and major dental work.
You can compare all registered private health insurers (or health funds) at http://www.privatehealth.gov.au/.