Guest Guest98336 Posted August 3, 2014 Share Posted August 3, 2014 Hi there, In order to secure my 457 visa, I know that need a level of private health cover in place - and I have temporary cover for this purpose. Being from the UK, I plan to enrol my family with Medicare (and understand that I will pay a 1.5% levy within my income tax payment as part of this). I understand that Medicare counts as adequate health insurance for the duration of my visit (and also that this does not get me the same level of cover as the NHS provides in the UK). If I don't take out private health insurance to supplement Medicare, I believe there is an additional charge of 1.5% I have to pay. In actuality, I am looking to take out private health insurance. One of the questions the insurer asks relates to something called Lifetime Health Cover. Because I have not held continuous hospital cover since since 2003-04, it seems I have to pay a surcharge of 2% for every year I am over 30yrs of age. Likewise my wife, too. Do I have to tick that I have not held continuous hospital cover since since 1 August 2004? As a temporary visitor to Australia, surely I have no option but to tick 'No' - but it feels a little unfair... On the subject of prescriptions, my wife is currently on a repeat prescription of 6 items. Living in Wales, we benefit from free prescriptions. In the UK, the annual fee would be £104, or £2 pw. Now, would anyone have any idea what prescription charges in NSW might be, both with and without private insurance? Many thanks for any help/insights you can offer. Steven :-) Link to comment Share on other sites More sharing options...
AJ Posted August 3, 2014 Share Posted August 3, 2014 it doesnt matter what insurance you have you pay the price of the drugs on prescription. if they are on the PBS they are usually subsidised but can still cost quite a bit, I take a few different ones as well and it costs me around $120 a month. So depending on what she takes it could work out quite expensive Link to comment Share on other sites More sharing options...
Guest Guest98336 Posted August 3, 2014 Share Posted August 3, 2014 Thanks AJ. All six items are listed as 'general schedule' on PBS. One of them is a strong version of an over the counter drug. Yet another hefty expense to add in to the mix! Link to comment Share on other sites More sharing options...
Guest guest73691 Posted August 3, 2014 Share Posted August 3, 2014 If you get health insurance, just make sure it exempts you from the Medicare Levy Surcharge. A lot of insurance policies for 457 visa holders won't do. Im on a 457 visa and in order for me to be exempt from paying the MLS, I would also need to purchase additional reciprocal cover on top of my normal policy (I'm with BUPA). Seems a bit ridiculous! Link to comment Share on other sites More sharing options...
Guest Guest98336 Posted August 3, 2014 Share Posted August 3, 2014 The private healthcare I've been looking at comes in at more than 1.5% MLS... Link to comment Share on other sites More sharing options...
Guest guest73691 Posted August 3, 2014 Share Posted August 3, 2014 Yes, it's expensive. I'm in 2 minds about whether it's worthwhile. My policy has extras cover and that has come in handy. However, the thresholds aren't that big, so I'm not sure how much value I'm getting! Link to comment Share on other sites More sharing options...
Melstra Posted August 5, 2014 Share Posted August 5, 2014 If you're on a 457 your value for money isn't great but once you get PR it can be worth it in many ways Link to comment Share on other sites More sharing options...
LouDYorkie Posted August 5, 2014 Share Posted August 5, 2014 Because I have not held continuous hospital cover since since 2003-04, it seems I have to pay a surcharge of 2% for every year I am over 30yrs of age. As far as I am aware, the above only applies if you were in Australia, otherwise you don't have to pay this extra 2% per year. I'm sure it says something on the ATO website....just can't find it at the minute. It was something like, it doesn't apply for temporary visa holders provided you get private health insurance within 12 months of becoming permanent? But don't quote me until I find the statement!! Link to comment Share on other sites More sharing options...
LouDYorkie Posted August 5, 2014 Share Posted August 5, 2014 Okay found it: http://www.privatehealth.gov.au/dynamic/lifetimehealthcover.aspx As someone with Reciprocal Medicare only and no continuous cover since 2007, I am NOT expected to pay the Lifetime Health Cover Loading. Hope this helps Link to comment Share on other sites More sharing options...
LKC Posted August 5, 2014 Share Posted August 5, 2014 I can't help with the prescriptions, since we don't have any medications that we take on a regular basis. With the health insurance, I believe that the 'normal' medicare levy that everyone pays went up from 1.5% to 2% from the 1st of July. On top of this, if your income is over a certain level, you will have to pay the medicare surcharge levy, which is either 1%, 1.25% or 1.5% depending on your income and whether you are single or have a family. You can see the information for this here https://www.ato.gov.au/Individuals/Medicare-levy/. As far as I know, you have one year from the date that you have PR to take out health insurance in order to avoid paying the lifetime loading (even if you are over 31). You can see the info here http://www.privatehealth.gov.au/faq/. Link to comment Share on other sites More sharing options...
Petals Posted August 5, 2014 Share Posted August 5, 2014 Just have to make sure you take it out before 31 however as I have said before many times we stopped ours for years when my daughter became ill with a chronic ailment, as the gap fees with private health made it unfeasible with someone with chronic illness. I have taken it out now that I have retired and I pay the penalty but get something back for being old person etc which makes it ok for me now and now I am using lol. So swings and roundabouts, the whole thing is to frighten young people into taking health insurance at a time when often they are at the most expensive time in their lives with young children, mortgage, career, training, uni for some etc. As we get older hopefully most of us get better off and who cares as long as we can get the care when we want it. I would not be frightened by Mr Howard into taking it out when he brought this scheme in. Link to comment Share on other sites More sharing options...
LKC Posted August 5, 2014 Share Posted August 5, 2014 You can avoid the lifetime loading on private health insurance over the age of 31 if you are newly PR and take the insurance out within a year of your PR grant. I believe that some people have received letters from Medicare in order to advise them of this loading, on becoming registered with Medicare on a PR. However, we were on a 457 (and on medicare) prior to obtaining PR, and slipped through the cracks, so we hadn't received a letter and hadn't realised that there was a lifetime loading. It was only earlier this year that we went to speak to a financial advisor, and were told that as we had been on PR for longer than a year (actually we are citizens), we would have to pay this lifetime loading if we took out private health insurance. I am almost 40 and OH is 37, so we would have to pay 17% more (average of 20% for me and 14% for OH). This bumps up the premiums somewhat, so we self-insure. We have a savings account that we put the equivalent of our health insurance premiums in, which is there if we need it. We haven't needed anything so far, and it is building up nicely. Touch wood we won't need it for many years to come, but if we do have health problems and elect to go private, the money is there ready to be used (and earning interest in the meantime). Link to comment Share on other sites More sharing options...
Guest Guest98336 Posted August 9, 2014 Share Posted August 9, 2014 That's a great help, thank you. Link to comment Share on other sites More sharing options...
fish.01 Posted August 9, 2014 Share Posted August 9, 2014 A note: "Overseas student or overseas visitors health cover If you are an overseas visitor, you can purchase overseas student health cover (OSHC) or overseas visitors health cover (OVHC) from an Australian-registered health insurer. These are not complying health insurance policies and you will not be eligible for the PHI rebate. When completing your tax return, as an overseas visitor with OSHC and OVHS: answer No at label E item M2 Medicare levy surcharge refer to the Individual tax return instructions when completing the rest of M2 do not complete the private health insurance policy details section." This page seems to have a lot of useful information and links: https://www.ato.gov.au/Individuals/Medicare-levy/In-detail/Medicare-levy-surcharge/Private-health-insurance-rebate-and-Medicare-levy-surcharge/?anchor=PHIR_Medicaresurcharge_overseasvisitor#PHIR_Medicaresurcharge_overseasvisitor Link to comment Share on other sites More sharing options...
fish.01 Posted August 9, 2014 Share Posted August 9, 2014 From what I understand private insurance for PR's is totally different to private insurance for visitors/temp residents. Mainstream PR private insurance is "hospital" insurance only. i.e it has nothing to do with GP's or visiting specialists outside of a hospital or day hospital. It offers no rebate to GP or specialist services at all when outside a hospital. Overseas visitor health cover (OVHC) on the other hand does cover GP's and specialists from what I understand. I guess my point is they are totally different beasts and answers about PR private insurance are often wrong for OVHC. Link to comment Share on other sites More sharing options...
fish.01 Posted August 9, 2014 Share Posted August 9, 2014 PR private hospital insurance can also come packaged with "extras" insurance. This is just for allied health professionals like physic and the like, including dentistry. This "extras" cover has nothing to do with eligibility for avoid the medicare levy surcharge or lifetime loadings. Only the private hospital insurance is relevant. Link to comment Share on other sites More sharing options...
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