Medicare or private health insurance for PRs?

[Oren Weiss]

Hi ,

We have just recently got our PR visa after 3 years with 457.

The PR was done independently(skilled) with no company sponsorship , and the Cigna comprehensive insurance is still valid. (being managed by GUhealth here in NSW)

 

since im still fully covered by Cigna, i have couple of questions:

1. Is there any obligation that should drive me to take medicare? is it mandatory to enroll?

 

2. Do i have to let my current insurer know about my visa status?

 

3. What do people usually do to get the most cost effective arrangement from taxation , levies etc..?

 

 

thanks,

Oren.

[Guest]

1. No obligation but definitely in your best interest.

2. I don't see why that would matter

3. Depends on income/age

[Oren Weiss]

1. No obligation but definitely in your best interest.

2. I don't see why that would matter

3. Depends on income/age

 

Thanks for that lastonealive

1. why is that in my best interest? If i already have a full medical coverage , what would be the added value of Medicare?

thanks again.

[Marisawright]

Why would you not enrol for Medicare? If you were in the UK, would you not register for the NHS? It's exactly the same thing.

 

I assume that you are seeking to avoid the Medicare levy, but I'm pretty sure that all Australian residents are liable to pay the levy whether or not they actually enrol for Medicare. The only way to avoid/reduce it is to be earning less than the threshold or to have appropriate health insurance.

[NicF]

Thanks for that lastonealive

1. why is that in my best interest? If i already have a full medical coverage , what would be the added value of Medicare?

thanks again.

 

Does your full medical coverage pay for GP visits? Or subsidise the cost of drugs on persription? And yes you do need to inform your health cover provider of your visa status as this may effect your premiums and cover. If they consider the change to be important they could refuse to pay out on any future claims, even if you would have been covered if they knew you were PR.

[Ken]

2. Do i have to let my current insurer know about my visa status?

 

3. What do people usually do to get the most cost effective arrangement from taxation , levies etc..?

 

 

There is a medicare levy and a medicare levy surcharge. You cannot escape the medicare levy even if you don't have a medicare card - it's a tax. So is the medicare levy surcharge but you can avoid that (assuming you are earning enough to have to pay it) by having complying hospital cover insurance. If your current policy was set up while on a 457 it might not be a complying policy so you need to speak to your insurer to change it if necessary.

 

Most hospital cover also comes with "Extras" for outpatient treatments such as dental, optical, physio etc;. These are purely for your own benefit and don't affect liability to the medicare levy surcharge at all so people who buy the insurance purely to reduce their tax bill will only buy the basic hospital cover.