Jamesuk123

Hello, my partner and I moved to Sydney February and are having a few problems working our way around the health system! We are from the UK so have reciprocal Medicare agreement, what I don’t understand is what additional private cover we need.

We are both on a 457 visa and currently we pay $202 for essential plus visitors cover with Bupa. I’m not a 100% sure if we actually need this and if it covers anything more then the Medicare will? Also, the joint income pre superannuation is $275k so I need to ensure we have cover that stops us paying the Medicare levy.

Is anyone able to shed any light on the best way forward?

Bermudashorts

Well it is difficult to comment on the particulars of your policy as have not seen it. But the amount is about what we pay as a couple so seems about right. If you cancel it, the Medicare surcharge will probably be more than the health cover, so it makes sense to keep it. You still pay the basic Medicare levy though, no way of avoiding that.

spuddyo

In addition to the basic Medicare Levy which you will pay, to avoid the Extra Medicare Levy you need hospital cover. Whether you want/need to do that is a personal choice.

goldchoccycoin

The Medicare Levy Surcharge for a couple with an income of $275K is 1.25% ($3437.50). Therefore your health cover is saving you $1013.50 per year.

Medicare Levy Surcharge

A good resource is - 457 Visa applicants

You may find a cheaper policy (available to 457 holders) that fulfils the Medicare Levy Surcharge Criteria - remember, 'standard' policies available to Perm Residents and Citizens may not be available to you on a 457 so ensure you check your eligibility.

Good luck!

KJCherokee

Regardless of any reciprocal arrangements Medicare does not cover dental and a lot of other non-GP/hospital requirements, so you need Extras cover at the very least - and as goldchoccycoin says, at your income level you also need hospital cover to save tax.