claretandblue

Hi,

We've had a letter from the government about our lifetime health cover loading deadline. We haven't got the private health cover yet, but we wondered what you have done and what your thoughts are?? Stay with the Medicare or take out private health care? Also what level of private health care? Most people Nigel has spoken to at work have always had the private cover.

Thanks guys.

Rachel & Nigel

moonsurfer

Depends on what your level of income is.

If it's above a certain threshold and you don't have private insurance then you'll pay extra in the 'Medicare levy' which is administered through the tax system.

With taking out 'basic private hospital cover' - (differently named by each fund) you'll probably find the cost of the insurance vs the increased Medicare levy you'd be paying if you didn't have insurance would be the same. 'Extras' cover isn't worth it in my view.

Do a few calculations - the ATO website www.ato.gov.au has something on the Medicare levy, then compare the costs of basic hospital cover offered by each fund. One benefit to private insurance is the ambulance cover - not covered by the public system and could cost a packet if you ever need it.

Wol

You *are* getting close to the one year deadline - another three weeks and you will be liable for an extra 2% on your premium for every year you are over 30 when you start. Make a decision soon!

Sally Simpson

We took out cover with GMHBA just before our one year deadline but primarily because we were at risk of going over the threshold this financial year. We did look at the cost of not doing it versus having it plus the fact the we all wear glasses, we have one child who needs orthotics & we all need dental care so felt we would make good use of the benefits.
For us on balance, it made financial sense.

claretandblue

My wages are pretty low and only one of us works at the moment. Our money is supplimented by our rental income from the UK. This still doesn't equate to a high income so I don't think the medicare levy is an issue.
I realise the one year deadline is up soon but we only recieved the letter on Monday. Still unsure what to do?

Bermudashorts

I always assumed that we pay for private medical insurance, we have it at the moment in UK through employer. However some friends at the weekend made it sound like you were worse off for having it. For example she is pregnant and has said she has paid nothing for her antinatal care so far, yet her friend who has private medical cover has to pay a proportion of the cots for each scan or something. I didn't go into the details too much, but does that sound right to anyone.

They basically said if you do not have an ongoing medical treatment, which we don't apart from the odd asthma inhaler it is not worth getting it.

comet555

If you have private and choose to go into the private route for hospital treatments, babies, etc, then you probably will have to pay gap fees.

If you have private and choose to go public then you would have no gap fees and you would pay just the same as any other public patient.

So, you have the choice which way you want to be treated. My kids have been to emergency twice, once requiring an overnight stay. Both times I told them I wanted to be treated through the public system and we've paid nothing.

I do think it's stupid that with private health has the gap fees, it kind of seems like what's the point in having it if you have to pay even more to actually use it.

What you do have though is the choice. I will always choose private unless there's a massive wait for an elective procedure that I'd rather pay early to have done.

Unfortunately we're stuck with private as we're over the income limit so it's cheaper to have it than pay the tax.

moonsurfer

If you and your family's health is good and (as far as it's possible to see) likely to stay so, and you're not on a high income, then in my view it's not worth it. Premiums are increasing each year and gap fees can be an issue. The public system is not perfect but then neither is the private.

Bermudashorts

That sounds like it, must have been the gap fees she was talking about. To make things more complicated she also suggested that "they" don't like people using the public service if there is private cover in place.

In terms of income, if both are working would you look at it individually, e.g. might make sense levy wise for one to be private but the other not? Any idea what level of income it makes more sense to pay for private?

comet555

It doesn't really matter if "they" like it or not. It's your choice. You don't even have to tell them you have it. If they ask it's very easy just to say no then you can't get hassled. I've had no issues both times I've mentioned private and chose to to go public. I usually have to sign a waiver though, but never got hassled.

Here's the link for the income test:
http://www.ato.gov.au/individuals/co...t/00215173.htm

Copied from the above site:

$73,000 if you are a single person with no dependent children

$146,000 if you are part of one of the following:
-a family (including a couple) with or without dependent children
-a single parent family.

If you have a partner you're treated as a family whether you have kids or not. I don't believe you have the option of only one having private to avoid the levy as you're treated as a family unit.

Also, I don't think it would be all that helpful cost wise anyway as I don't think it's too much more for a family than a single. Not too sure though, would have to compare the rates.

Bermudashorts

Okey dokes. Thanks Comet, that is all starting to make sense now. Private insurance it is.

ABCDiamond

I experienced similar to that in my first year here, and was told to tell the hospital that I did not have private insurance. I then let the insurance drop, and never renewed again.

HOWEVER, insurance can be valuable to some people, and this "lifetime health cover loading" premium does make it a more difficult decision.

In your shoes, I would take out a qualifying policy now, and this then gives you another year in which to really think about it, whilst keeping out of the "loading" problem.

Private insurance, with extras, is very valuable for larger families, and for non emergency medical attention, where you want to avoid the elective queues.

It can also be also almost free if your income is over the thresholds, after taking account of the Medicare Levy Surcharge.

Wol

>>That sounds like it, must have been the gap fees she was talking about. To make things more complicated she also suggested that "they" don't like people using the public service if there is private cover in place.<<

The "Gap" fees - and I've banged on about this over and over again - are the big issue.

Medicare will pay something for most procedures, and the insurance pays the rest UP TO THE MEDICARE ASSESSED FEE. The problem is that this isn't anything like what the surgeon will usually be charging - and we are talking thousands, not just a small amount.

The insurance only pays a fraction of what surgery will cost you, and if you are private you will have to pay the rest. Yes, the hospital room will be paid in full, but there will be a long list of path tests, doctor's assistants, etc to pay in person.We've been here five years and unfortunately had several hospital admissions: despite having private insurance from day one it has still cost us something approaching $50,000 in medical expenses (plus the insurance premiums).

I would go with the advice to take it out if only to investigate for a year or two and keep outside the age loading.

itigo

I have had several hospital admissions this year and tests etc. Most of the time there has been no out of pocket expense. My surgeon did charge a gap of $400 but my other specialist is in the Medibank Gap scheme (or summat?) so he charges no gap at all. Had 3 procedures by him and no gap. Paid a small gap for anaesthetists but under $100 each time (one was over but it was an emergency one).

I thought we would have spent a fortune but it's nothing near what I thought it was!!

SEAndy

Hi,

Read through this thread and have few questions on medicare/private alternatives...

I moved to Australia in 2007, never did sign up for Medicare or other Australian private alternative at that time (as I had an extensive global healthcare insurance/coverage through employer at the time).

However moved to Europe due to work in late 2008 and will now be returning shortly to Australia to live.

- Reading a few posts in this thread there seem to be a 2% extra charge per year in Medicare charge (medicare levy?) over 30 years of age, as I didn't sign up initially on the first move to AU - is this correct?

If this is the case (I'm 32) it would appear that private health might be a better options financially when I'm returning to Australia? What could I expect to pay yearly in private alternatives? Any links covering this subject would be appreciated.

Thanks,
Andy