Guest lilimary Posted October 24, 2011 Share Posted October 24, 2011 Hi all, I have just lodged my application for PR last week. As I understand, I am now eligible for Medicare. However my company has been paying for private health insurance on my behalf for the last 3 1/2 years. Question is : Do I have to let them know that I have lodge for PR and they can cancel the private health insurance? Or can I wait till I get PR granted to enroll with medicare and pay for my own private health insurance? Bottom line is I would like to keep enjoying their good health insurance cover as much as I can, but not sure if I can?? Cheers Lili Quote Link to comment Share on other sites More sharing options...
Guest jazz123 Posted October 24, 2011 Share Posted October 24, 2011 You can enroll with Medicare straight away however lifetime healthcare loading deadline starts from the time either you enroll with Medicare or attain PR. Also you could get 30% rebate on your private insurance once you are enrolled with Medicare so its much cheaper. Quote Link to comment Share on other sites More sharing options...
Guest lilimary Posted October 24, 2011 Share Posted October 24, 2011 Thanks for your reply At the moment my employer is paying for my health insurance, so it is cheaper for me not to get medicare/my own insurance. I was just wondering if I had an obligation to enroll with medicare straight away or if it could wait until PR is granted... Quote Link to comment Share on other sites More sharing options...
Guest jazz123 Posted October 24, 2011 Share Posted October 24, 2011 My understanding is that you do not have any obligation to enroll with medicare at any point. As long as you are not a Permanent resident, you can claim for medicare levy and LHC loading deadline does not kick in till you are enrolled. I may be wrong since i am not an expert and have this understanding based on searching different rules over internet etc. Quote Link to comment Share on other sites More sharing options...
Guest jazz123 Posted October 24, 2011 Share Posted October 24, 2011 In your case, since you are not paying for the health insurance, it might suit you not to enroll till you get PR. Quote Link to comment Share on other sites More sharing options...
alex2010 Posted October 24, 2011 Share Posted October 24, 2011 In your case, since you are not paying for the health insurance, it might suit you not to enroll till you get PR. Hi, Be very careful and consult this issue with a tax agent. I don't think so you are obliged to enrol in medicare, however, you might be liable to pay medicare levy anyway because you are eligible to medicare. To be exempted from medicare levy you need a medicare levy exemption certificate.When you apply for it, you have to answer a question if you have applied for PR and also send a copy of all your australian visas. Therefore, you may be paying twice for your health cover. Alex Quote Link to comment Share on other sites More sharing options...
Guest lilimary Posted October 25, 2011 Share Posted October 25, 2011 Yes, I agree Alex. I think I will be liable for the medicare levy from the day I have lodged for PR... Therefore my overseas visitors health insurance cover currently paid by my company is probably already void. I am worried I will lose all my waiting periods etc if I don't join soon a resident cover. Quote Link to comment Share on other sites More sharing options...
alex2010 Posted October 25, 2011 Share Posted October 25, 2011 It depends on terms and conditions of your current insurance. You may continue to use it even if you have a medicare card. If I were you, I would check your current insurance. If you have a private hospital cover, you will get a government rebate as mentioned in this thread somewhere earlier. You can claim this rebate directly through your insurer or at the end of financial year through your tax return by getting a tax offset. Quote Link to comment Share on other sites More sharing options...
Guest lilimary Posted October 25, 2011 Share Posted October 25, 2011 Yes I know about the rebate, but it is still cheaper for me to have the insurance paid by my company even if the rebate was 90% ;-)) I know for a fact that the visitor cover is void if I have medicare... Hence why I am trying to understand if I do have to enroll as soon as PR is lodge. I have tried to get some guidance from my RAM but he is unsure. Quote Link to comment Share on other sites More sharing options...
Guest Yury Posted October 25, 2011 Share Posted October 25, 2011 Hi, Been there very recently. There is no obligation for you to drop Overseas Visitor Health Cover based on the fact of application for PR. My understanding is that you become ineligible for OVHC only when PR is actually granted. I don't think OVHC is void if you have Medicare. I notified my fund (IMAN) when I got Medicare and kept their cover for a while after. If it is indeed void then there is nothing to think about, right? Anyway, from the day you've lodged your application and is physically present onshore you will be liable for Medicare levy and Medicare Surcharge if applicable. You would not be able to obtain Medicare Levy Exemption Certificate anymore - the forms ask if you have a PR application. It all means that you would pay 1.5% of your income in levy, and additional 1% if you earn above 80K or so. OVHC does not exempt you from paying surcharge. You need to weigh the benefits of: 1) keeping employer sponsored OVHC, and paying 2.5% of your income as Medicare levy and surcharge or 2) dropping OVHC. You can have Medicare and no insurance, it will cost you 2.5% of income. Plus any possible medical expenses over what Medicare covers. or 3) drop OVHC. Join Medicare, join PHI (private health insurance) fund for residents. It costs you 1.5% levy + cost of insurance. Plus "gap", excess and other out of pocket expenses. In first scenario your medical needs are "double covered", but since you are not the one paying it shouldn't matter for you. If you could negotiate with your employer that they stop your insurance and increase your pay accordingly - that's a real winner! If not, and if you can still have OVHC (check that with your fund), I probably would not bother with Medicare for following reasons: - OVHCs are more comprehensive than Medicare + PHI (and more expensive for this reason). With some providers, like IMAN, you are covered for 100% of expenses (hospitals and extras, plus GPs and specialists, tests etc). It is a different story for Medicare+PHI - it is only hospitals and extras, no benefits for out-of-hospitals services. You probably would find you are paying a lot more out of pocket, even though your "resident" insurance itself is a lot cheaper. It is because MBS benefits are usually less than service costs and every GP visit costs you some 30$ out of pocket and is not covered by "resident" private health insurance. - LHC loading. If you over 30, the moment you join Medicare 12 months exemption period starts ticking. With DIAC processing timelines it will be over before you know it and for the rest of your life you will be paying a bit extra for hospital cover. Regards, Yury Quote Link to comment Share on other sites More sharing options...
Guest lilimary Posted October 25, 2011 Share Posted October 25, 2011 Waouh Yury, thanks a lot, it makes a lot of sense and it helps heaps!!! I just spoke with my current PHI and they actually said I could stay on OVHC. My employer will not increase my pay if they stop my insurance that is a sad given :-( Having been through covers option for the last 5 days, I agree that OVHC is better than medicare + PHI, so I might as well keep it...! Although I'm turning 31 next year so I have to think about that LHC and also the surcharge as I earn above 80k. You gave me a bit of thinking to do! Thanks Quote Link to comment Share on other sites More sharing options...
Guest Yury Posted October 25, 2011 Share Posted October 25, 2011 Glad to help. As I said, if your OVHC provider is happy to keep you even though you are eligible for Medicare, it is a best arrangement. Provided of course that employer pays for insurance. If you join Medicare you'll start the clock on LHC and will gain nothing on top of your OVHC. Cheers Quote Link to comment Share on other sites More sharing options...
RockDr Posted October 25, 2011 Share Posted October 25, 2011 If you are british and eligible for reciprocal medicare (yellow card), I'm pretty sure you can't get the medicare levy exemption, so you could be liable for that, plus the surcharge, even if you don't register for the interim (blue) medicare card that you are eligible for having applied for PR. Quote Link to comment Share on other sites More sharing options...
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