With Medicare, Is Private Health Insurance Really Worth It?
It’s a hot topic around dinner parties at the moment, well at least the dinner parties that Billy Explores attends. With the great Australia healthcare system that is Medicare, is private health insurance really worth it? Once you get into that topic, discussion can really get heated (we always throw in it’s best to do a private health insurance comparison so you can save money, just in case).
People with private health insurance don’t have to wait long for procedures that aren’t urgent, and they can get services that Medicare doesn’t pay for. But the out-of-pocket costs may stop some people from using it to pay for their health care.
Medicare vs Private Health Insurance
Most people think that Medicare and Private Health Insurance are the same thing. This is not the case. Under the Pharmaceutical Benefits Scheme, Medicare pays for things like doctor visits, diagnostic tests, treatment and lodging in public hospitals, and most prescription drugs.
Some temporary residents, people with partner visas, and people who are in the country on skilled regionally sponsored visas can also get Medicare.
Australia has one of the best public health care systems in the world, but there is a difference between Medicare and private health insurance. For example, under Medicare Australians may have to wait a long time for procedures that aren’t life-threatening, like hip replacement or cataract surgery.
Second, Medicare doesn’t pay for services like ambulances, eyeglasses or contact lenses, osteopathy, etc. This is another difference between Medicare and private health insurance. Of course, this is where extras insurance and comparison of policies also comes into it!
Private Health Insurance Comparison vs Medicare
On the other hand, there are lots of differences between private health insurance. For example, private health insurance will let you get care in a private hospital, where waiting times for elective surgeries are much shorter and may allow you to compare health care providers and choose the doctor who will treat you.
With “extras cover,” you can get services that Medicare doesn’t cover, like dental care, eyeglasses, etc. This can be very beneficial if you need regular items. A great idea is to do an extras insurance comparison as well.
Benefits of Private Health Insurance Comparison vs Medicare
Senior executive at Medibank Milosh Milisavljevic says that the purpose of private health insurance is to give Australians choices and take pressure off the public health system.
“You know that if something happens to your health or your family, you’ll be able to get to the right hospitals, doctors, and procedures and have the money to pay for them through your coverage.”
It gives people a choice of doctor, hospital, and the ability to make their health care fit their needs and the needs of their family.
What Are Gap Fees?
When you use private health insurance to pay for your medical costs, you may have to pay extra money out of your own pocket. This is also the case sometimes with Medicare and certain providers (so there is not much difference between Medicare and private health insurance in this instance!)
When you go to a private hospital, you pay more than you have to. You can choose to pay more out of pocket to lower your premium.
The gap fee is the other cost that you have to pay out of pocket if the surgeon or doctor charges you more than what your insurance covers.
What Type of Government Support Is There For Medicare and Private Health Insurance
To get people to buy private health insurance, the federal government gives tax breaks.
If a person doesn’t have private hospital insurance and makes more than $90,000 or their family makes more than $180,000, they have to pay between 1% and 1.5% of their taxable income as Medicare Levy Surcharge.
Rebates and lifetime health cover loading are the other two ways that the government can step in with Medicare and private health insurance.
Government rebates allow people who buy private insurance a discount if their income is below a certain threshold, which depends on their age and their income. The lifetime health cover is meant to encourage people to get private insurance early on. If they don’t have it and decide to get it later, they have to pay the penalty, which is a 2% loading for each year after they turned 31.
It depends on how much money you make. If you make a lot of money, you could save a lot of money. The Medicare Levy Surcharge and lifetime health cover loading are meant to get people to get private insurance so that the public health system doesn’t have to work so hard – which again is a key difference between Medicare and Private Health Insurance.
Key Factors To Consider About Is Health Insurance Really Worth It?
Medicare and Private Health Insurance. What is better? Look into your life and what you will need to use it for (for example you might want to get pregnant so need private health insurance at least 12 months before you get pregnant.
Consider the rebates. Consider how much tax you have to pay. Many people make choices to avoid paying taxes but some people might be willing to pay more tax. So they are happy to pay the extra Medicare tax.
Also, keep in mind that in most Australian states and territories, you are not covered for ambulance service. Ambulance Cover is paid for by the state government only in Queensland and Tasmania, but only if you live there. So, if you live in VIC, NSW, SA, NT, ACT, or WA, you’ll need to buy Ambulance Insurance from either a private health fund or a state ambulance service.
Private Health Insurance Comparison
Hopefully we’ve answered any questions you had about whether the fact we have Medicare, is private health insurance really worth it? If we have, then it’s time to compare health insurance in Australia through Billy Explores! You can do an extras health insurance comparison as well of course hospital and health insurance in Australia comparison. To compare health insurance in Australia, click here. We promise there won’t be any Medicare vs Private Health questions.
