Paying for Private Health Insurance
Just thinking about health insurance gives me a headache. I have to know what I need, how much I should pay for it and how to go about finding the coverage I want. Unless money is no object to you, then cost will be a consideration when you compare health insurance options. There’s a lot to learn and consider, but with some time and effort, you can get the coverage you want and feel confident you’re paying no more than necessary.
Image by Adrian Boliston
Understand What You Already Have
The good news is that as an Australian, you already have basic health care coverage. Medicare is the basis of the Australian public health care system and covers many health care costs like basic medical care including doctor visits, tests, surgery and more, as well as hospitalization. However, there are limits and stipulations. Medicare does not cover private patient hospital costs, glasses and contacts, most dental services, and certain other health care related expenses. You can find out more about what is and isn’t covered by Medicare from the government’s Private Health Insurance Ombudsman.
Decide What You Need
Once you’ve figured out what you’ve got, then you can start deciding what health insurance coverage you want and how much you’re prepared to pay for it. Your health insurance needs are based on a few factors. The number of people needing coverage, your age(s), general health and your personal preferences are some things to consider.
Age
Age is a consideration for a couple of reasons. First of all, you may want more health insurance coverage as you get older, to cover the health conditions that age may unfortunately bring. You may also want health insurance coverage for your whole family, including children. Another consideration is the Lifetime Health Cover, a government initiative designed to encourage people to take out hospital insurance earlier in life and to maintain their cover.
Number of people needing coverage
Obviously, the number of people you have to cover will affect your health insurance comparison and quotes. If you are a family of four, you may decide you need to provide private coverage for only the adults in the family, only the children, or all four.
General health
Your overall health is also something to consider when deciding on private health insurance. If you are healthy and rarely need medical care, you may decide you don’t need any private coverage. But if you have a medical condition that requires even occasional medical treatment, you may need some additional coverage.
Personal preference
If you are fine with having to use the doctors and medical establishments covered by Medicare, you may not want private health insurance coverage. However, if you like being able to choose who you see and where you go, you may want to take out some private health insurance.
Decide What You Can Pay
Now that you understand what coverage you have through Medicare and have figured out what additional coverage you need, it’s time to examine your options, look at the costs and decide what you can and will pay. The prices vary as much as the policies, so this is where more research may become necessary.
Although this may seem intimidating at first, there are websites that can help you to compare private health insurance. If you enter some basic information you’ll be given a list of several health insurers that offer the coverage you detailed, along with either an estimate or a quote for the monthly premium. There are many things to consider when it comes to cost. The government offers a rebate for private health insurance which means you may get back some of the money you pay on your premium.
There are many private health insurance policies out there, but don’t feel overwhelmed. And always remember, you are not completely without health insurance coverage. Medicare is sufficient for basic health care needs. If you are having financial difficulties, you may decide you simply can’t afford private health insurance
The main goal in finding private health insurance on a budget is to get the coverage you want without paying more than you can afford. This can be achieved if you take your time and do your research. Once you’ve chosen your policy with the above tips in mind, you’ll have peace of mind about your health insurance coverage and your budget.
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