jackie

Hi - I'm 2 weeks away from coming to Sydney with a new job. Got a 457 visa & all seems to be going well. However, I am completely confused with the Medicare bit! I am told that the UK has a reciprocal heath care programme with Aus but that I also need to take out a policy that will cover me for the MLS?

I am really confused! What have other people done & are there any tax breaks?

Thanks

shonalouise

We have come out on a 457 and have decided not to take out any extra healthcare insurance. The reciprocal healthcare arrangements really entitle you to most of the stuff you will need. Covers all emergency healthcare, elective surgery unless medical emergency would not be covered. Everybody pays for GP visits, you get some refunded by medicare but mine costs about $25 per visit after rebate. The main thing is that if you had a medical emergecy or accident and had to go to hospital you would be fully covered.

There are heaps of different companies offering insurance, I found it was expensive and the choice of which cover to use is a bit of a minefield, perhaps somebody with a little more experience would be able to help you with that.

JAJ

Reciprocal medicare is only limited in scope. Why is your employer not providing full medical insurance? (which they are supposed to do, really).

jackie

My employer is providing me an allowance for Medical cover (which seems to be quite generous) but I'm just not sure where is the best place to go in terms of rates, services, whether there's anything special you need on a 457?

jayr

You can try the few companies that provide medical insurance for 457 visa holders but expect to pay through the nose. I got an online quote from MBF which worked out araound $3800/pa for a family.

See here for more stuff:

http://britishexpats.com/forum/showthread.php?t=455606

I DO NOT have private medical insurace and I am on 457. I self insure - i.e. pay private costs when the reciprocal arrangement doesn't cover me (not sure that has actually occurred yet in 4 years with a family of four) or when I want 'fast' service.

Even if your employer provides some cover you will pay Fringe Benefits Tax on the value of the benefit. You can achieve the same effect by salary sacrificing your private mdeical insurance so it is really neither here nor there whether your employer provides it or not to be homest, even though they are technically obliged to for 457 holders.

There is an additioanl Medicare Levy Surcharge of 1% for family income over around $120,000. That is you will pay as everyone does the 1.5% medicare levey but if earn over $120k pay an ADDITIONAL 1% of gross income (so say $1200) if you do not have cover. You might weigh that cost against the cost of insurance premia.