Should You Get Private Health Insurance?
The decision of whether or not to purchase private health insurance is an important one in Australia as in many other countries. While private health insurance is not a necessity, there may be several benefits to private health cover, both on a practical and financial level. Ultimately, the decision will come down to your preferences and budget.
Image by iPostcodes.com.au
Medicare: Public Health Cover
Citizens of Australia and New Zealand (and residents holding permanent visas) are eligible for Medicare, a highly-regarded form of public health coverage. There is no cost.
Covering a number of essential aspects of health care, there is a list of Medicare benefits that citizens can take advantage of – and it’s relatively simple in terms of the process. The patient can pay their own healthcare fees and then claim a reimbursement, or arrange for the cost to be taken care of at the time of treatment or consultation.
Note that while there is no cost, there is the Medicare Levy Surcharge and Lifetime Health Cover, both of which you should ensure you understand. Also, there are some disadvantages associated with the public health care system, as we will see in the next section.
Advantages of Private Health Insurance
Private health insurance or hospital cover will help to pay your healthcare costs in a number of important areas. It also offers practical advantages that you should consider.
Private health insurance may be more convenient. You are free to choose your own doctor, and can avoid the waiting lists associated with public health insurance.
There is also the important point your of peace of mind. Private health insurance policies will certainly provide more extensive healthcare coverage. You can choose where you are treated, feel more confident in being covered for a variety of treatments beyond those available through Medicare, and often get your consultation and/or treatment faster with private health insurance.
Financially, as we have seen, you may want to look into your eligibility for the Medicare Levy Surcharge and the Lifetime Health Cover. If you can make these systems work for you, then when you combine this with the Private Health Insurance Rebate – at least 30% – you can start to see the savings that can be grasped.
Can’t Afford Private Health Insurance?
Not everyone can afford to purchase extensive private health insurance coverage. There are some options if that is your situation.
You might consider getting a low-coverage private health insurance policy that covers only a few services beyond those available through Medicare. This way, you will be eligible to avoid the taxes mentioned above. Alternatively or additionally, you could look into whether you might be eligible for a lower health insurance premium for any reason, or whether you might obtain a discount in any way. The overall cost may turn out to be quite reasonable.
Overall, the answer to this question is once again dependent on your needs. You might be able to take advantage of the benefits that come with comprehensive private health cover. However, don’t fret if that isn’t the case – there are several options that can enable you to make the most of your situation. Consider some of these with regard to your needs in order to make the right decision.
Related posts: