Guest MADTOM Posted September 29, 2011 Share Posted September 29, 2011 My head is spinning! Been on phone all day trying to find a private health in surance (basic) policy that is less than the MLS. From this year we will have to pay 1.5% medicare levy AND 1% surcharge. The whole point of the surcharge is to get people to buy private hospital care cover but for the life of me I cannot find one that is less than or even equal to the MLS! The lowest quote we got is $1000 over the MLS therefore to my mind we may as well pay the surcharge and just get separate extra's cover which would still be cheaper than the quote. Everyone has quoted the basic private hospital insurance but then say in order to avoid paying the MLS we have to pay an extra amount which can be as much as $148 per month to avoid the MLS. One "basic" quote I got was $3000 over MLS and the lady couldn't understand that there was really no point paying $3k over MLS to avoid paying the MLS - lols. The extra payment apparently does not get "used" and is just an add on. :arghh:Does everyone pay this extra payment or is it just 457 visa holders? Quote Link to comment Share on other sites More sharing options...
Guest MM2Melb Posted September 29, 2011 Share Posted September 29, 2011 It is everyone. The whole system seems like a scam designed to line the pockets of private insurers. Even once you buy your private health care you are afraid to use it because of the ridiculous gap fees! And if you were too poor/disadvantaged to buy before 31 you are penalised for years. I thought the labor government would ditch in once they got in but obviously not. Quote Link to comment Share on other sites More sharing options...
Skani Posted September 29, 2011 Share Posted September 29, 2011 Everyone has quoted the basic private hospital insurance but then say in order to avoid paying the MLS we have to pay an extra amount which can be as much as $148 per month to avoid the MLS. :arghh:Does everyone pay this extra payment or is it just 457 visa holders? I don't understand the bit about paying extra - whether there is an extra payment for 457 visa holders. However the normal rates for a family wanting basic hospital cover are around $1800 a year. The minimum MLS would be about $1650 a year Quote Link to comment Share on other sites More sharing options...
Skani Posted September 29, 2011 Share Posted September 29, 2011 Forgot to say there is a website called iselect where you can submit your information and get quotes online: http://www.iselect.com.au/index.jsp?memberShipErrMessage=&stateErrMessage=&insuranceType= Quote Link to comment Share on other sites More sharing options...
p182 Posted September 30, 2011 Share Posted September 30, 2011 My head is spinning! Been on phone all day trying to find a private health in surance (basic) policy that is less than the MLS. From this year we will have to pay 1.5% medicare levy AND 1% surcharge. The whole point of the surcharge is to get people to buy private hospital care cover but for the life of me I cannot find one that is less than or even equal to the MLS! The lowest quote we got is $1000 over the MLS therefore to my mind we may as well pay the surcharge and just get separate extra's cover which would still be cheaper than the quote. Everyone has quoted the basic private hospital insurance but then say in order to avoid paying the MLS we have to pay an extra amount which can be as much as $148 per month to avoid the MLS. One "basic" quote I got was $3000 over MLS and the lady couldn't understand that there was really no point paying $3k over MLS to avoid paying the MLS - lols. The extra payment apparently does not get "used" and is just an add on. :arghh:Does everyone pay this extra payment or is it just 457 visa holders? Yes, this is a bit of scam on 457 visa holders, and is a bit of a complex one so stick with me while I try and explain! In order to avoid the MLS you have to have what is deemed 'appropriate hospital cover', known as CHIPS (Compying Health Insurance Policies). The definition the Australian Tax Office use for this is set out in the Private Health Insurance Act 2007. The way that these policies work is that 100% of the hospital fee is paid by the insurer, and 25% of the doctor's fee is paid by the insurer. 75% of the doctor's fee is paid by medicare. This is the same for all hospital CHIPS. BUT, and here is where you get screwed if you are a 457 visa holder... whilst you might be eligible for Medicare services under the reciprocal UK-Aus agreement this only covers you for treatment as a public patient in a public hospital. It never covers you as a private patient. So if you were to try and use this policy you would have to pay 75% doctor's fees yourself. Considering how large these can be for hospital treatment this is not realistic. However you would avoid the MLS. When you call an insurer and want the above CHIPS policy they will probably also try and sell you a special form of insurance designed for 457 visa holders, as the above policy isn't suitable for your needs (from a health perspective, not financial). For example the insurer HBA has such a policy. These policies are designed to cover you for all your hospital expenses. However, these 457 health policies are not CHIPS policies, i.e. they do not comply with the Australian Tax Office's definition of an appropriate level of hospital cover. So if you only have such a 457 designed health policy then you would still be liable for the MLS. To be fair to the health insurers the 457 policies (and also those designed for international students) can never be CHIPS policies because of the way the Private Health Insurance Act (2007) works and the ATO's use of it in determining what is appropriate hospital cover. I hope the above explains the confusion, please do ask more questions if you need further clarification. So essentially if you are a 457 visa holder and you want to avoid the MLS and have private hospital cover you have to have two private health insurance policies. By law insurers cannot refuse to sell you a CHIPS, even if the policy is a little redundant for your needs. You can read more about this here: http://health.gov.au/internet/main/publishing.nsf/Content/935A472380589E82CA25762C007EEE4E/$File/PHI%2060_09.pdf I'm a little surprised by the quotes you have been finding. Do you might stating the ages of the person's over 18 that are to be covered by the policy. You might have been quoted with the Lifetime Loading applied, which might not be appropriate depending on how long you have been in the country. The cheapest CHIPS policy that I can find for two adults with no lifetime loading applied is $1060.20 per year. Quote Link to comment Share on other sites More sharing options...
Guest Jersey Couple Posted October 9, 2011 Share Posted October 9, 2011 Hi P182 We have been told by our accountant that our policy does not exempt us from the MLS and we have to get a new one. So I should ask for a CHIPS policy, where did you get your quote from for $1060. We are paying more than that at the moment for basic cover but we do have two young children too. Thanks Rob Quote Link to comment Share on other sites More sharing options...
Petals Posted October 9, 2011 Share Posted October 9, 2011 My head is spinning! Been on phone all day trying to find a private health in surance (basic) policy that is less than the MLS. From this year we will have to pay 1.5% medicare levy AND 1% surcharge. The whole point of the surcharge is to get people to buy private hospital care cover but for the life of me I cannot find one that is less than or even equal to the MLS! The lowest quote we got is $1000 over the MLS therefore to my mind we may as well pay the surcharge and just get separate extra's cover which would still be cheaper than the quote. Everyone has quoted the basic private hospital insurance but then say in order to avoid paying the MLS we have to pay an extra amount which can be as much as $148 per month to avoid the MLS. One "basic" quote I got was $3000 over MLS and the lady couldn't understand that there was really no point paying $3k over MLS to avoid paying the MLS - lols. The extra payment apparently does not get "used" and is just an add on. :arghh:Does everyone pay this extra payment or is it just 457 visa holders? We used to just pay the surcharge and not have the insurance. Unless you need a hip replacement, knee or something that can wait and are young then its up to you. We had a special account put money in it each pay and that paid for any small things we needed doing, we are in pocket. I now have insurance with Latrobe and have to pay the full whack of 2% for every year I have not had it but now I need the knee work and all that stuff as am retired and this way I will come out on top rather than paying for years and years and never using the insurance. Of course if you want to have doctor of your choice do the op or if women are having babies and want to select an obstetrician then health insurance is needed and its needed 12 months before conception. I got mine from the internet server cannot remember what it is but it got me the best deal. Quote Link to comment Share on other sites More sharing options...
fish.01 Posted October 9, 2011 Share Posted October 9, 2011 ...Of course if you want to have doctor of your choice do the op or if women are having babies and want to select an obstetrician then health insurance is needed and its needed 12 months before conception. ... 12 months before birth usually. Quote Link to comment Share on other sites More sharing options...
Petals Posted October 9, 2011 Share Posted October 9, 2011 12 months before birth usually. I believe that is before conception or are we evolving to 12 month terms :laugh: but yes 12 months is the usual for anything preexisting and I suppose pregnancy is pre existing. Quote Link to comment Share on other sites More sharing options...
p182 Posted October 10, 2011 Share Posted October 10, 2011 Hi P182 We have been told by our accountant that our policy does not exempt us from the MLS and we have to get a new one. So I should ask for a CHIPS policy, where did you get your quote from for $1060. We are paying more than that at the moment for basic cover but we do have two young children too. Thanks Rob Hi Rob, Prices can differ slightly by state. So I'll give you the New South Wales price... Here's an even cheaper policy for two adults and two children.... Fund: Health Insurance Fund of Australia Limited Policy: GoldStarter Hospital Price per month: $79.30, i.e. $951.60 per year. The policy itself isn't very impressive though. It doesn't cover a lot of things, so you should only take it out if you are looking to avoid the medicare levy surcharge, rather than actually cover yourself for potential private hospital needs. Important: the price includes the 30% federal government rebate and assumes no lifetime health cover loading. So depending on your visa type, medicare eligibility status, and number of years over 30 that you've not had private health insurance, the price will vary. Also important to note is that the maximum excess that a policy can have in order to exempt you from the medicare levy surcharge is $500. If you want to find more policies check out the government website which lists every CHIPS private health insurance policy: http://www.privatehealth.gov.au Quote Link to comment Share on other sites More sharing options...
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