Health insurance - what is it sensible to buy?

I absolutely agree that a health insurance or medicare coverage will depend on the country you are moving.

We self-insure, and I am sure I've read of other forum members who do the same. Because of the age loading that we would have to pay (we missed the one year window they give you because we didn't know about it), even basic health insurance is expensive for us. OH's salary means that we have to pay the extra medicare amount, but whenever I've looked at it, paying for insurance has always been far more - I guess we fit into a particular bracket though, so I do check every financial year. Plus you still generally have out of pocket expenses for things, so in our situation it really doesn't make sense. For example, a friend opted to have her daughter's tonsillectomy done privately. I think they paid something like $4000 out of pocket!

We put a set amount away per month in a savings account, and have built up a fund that can be used to pay for anything if need be. We just pay for doctors visits (our excellent GP only bulk bills for kids), the odd x-ray that we've needed, and our daughters psychology visits (she is autistic) as we go, and save our health money just in case it is needed for anything major.

We self-insure...

 

We put a set amount away per month in a savings account, and have built up a fund that can be used to pay for anything if need be. We just pay for doctors visits (our excellent GP only bulk bills for kids), the odd x-ray that we've needed, and our daughters psychology visits (she is autistic) as we go, and save our health money just in case it is needed for anything major.

I think a few people would wonder what "self insure" means. I know I hadn't heard the word until fairly recently. Basically it's as you describe - you just put money aside to build up your own fund to pay for expenses.

My oh actually worked in insurance, but he has never had health insurance or contents insurance in his life! He's saved a fortune over the last 40-odd years by not paying premiums so even though he acknowledges he'll be faced with higher costs as he ages, he feels it will balance out.

Private healthcare in Australia is a bit of a nightmare, and the costs keep rising year on year. They(private healthcare companies) know you are being forced by the government to take it out. Unlike the UK, which I believe is a luxury item.

And if you are over 30 or 32, not sure of the exact age, then if you do not have it you have to pay extra tax. Catch 22!

Medicare does not cover dental treatment, which the extras of private healthcare can cover some of the costs. Dental treatment, IMO, is pretty expensive in Australia. I was shocked at some of the costs for a crown(root canal already done in the UK many years prior) $5k and the cost of an implant, $7k.

Maybe get a basic cheap plan, if you are over 30, to offset the extra tax. Work out if this may be of any benefit to you as if you decide to upgrade in the future it could offset the higher fees you would be hit with for not having health cover.

Another thing to look at is the gap, what you get back when you make a claim. I am lucky my company provides a very good top plan which covers 90% of any extras treatments. Some plans look cheap, because they may only provide a 50% gap. I have friends that have cancelled there cover as the cost out weighed the benefits and paying the extra tax.

If you decide to go with private healthcare, check the ambulance cover(does not apply to QLD). Even though I have top tier cover, I am only covered for 1 ambulance call out per year. I just noticed this year after a chat with my hairdresser about buying ambulance cover. Buying ambulance cover separately is quite cheap, less than $50/year in VIC for a single person. Again you need to decide if this an expense you want to pay.

And if you are over 30 or 32, not sure of the exact age, then if you do not have it you have to pay extra tax. Catch 22!

 

You are rather confused.

There is no extra tax to pay if you don't have Private Health Insurance over the age of 30. You have to pay the Medicare Levy Surcharge if you are a high earner and don't have Private Health insurance - but that applies at any age, and has nothing to do with being 30, 31, 32 etc.

You will pay an Age Loading if you take out Private Health Insurance for the first time after the age of 30. It is not extra tax, it's an increase in premiums and it's to discourage people from taking out Health Insurance only when they get old and sick.

Thanks again to everybody for all the helpful info, which made it a lot easier for us to find our way into the healthcare system here. So far, so good.

It does depend on where you live. It also depends on the whim of the doctor. My neighbour (inner Brisbane) always gets bulkbilled by his doctor. My doctor not only does not bulkbill, but won't accept the Seniors Health Card. So why don't I choose another doctor? Because this one is very experienced and very thorough. She picked up things with my father that his previous doctor had missed (too pally, knew each other more than 30 years.) Dentistry is not covered by Medicare. Can be very expensive, which is why a lot of people go off to Thailand. A couple of years ago I paid about $12,000 for one root canal and one implant. (Private health cover paid for some of it.) There are various websites where you can compare private health insurance, and work out what is best for your own circumstances.