ptlabs

Hi all,

The Commonwealth Government recently moved to recognize that recent migrants should be treated differently for a limited time after their arrival for the Lifetime Health Cover scheme.

http://www.health.gov.au/privateheal...t.htm#migrated

In a nutshell, recent migrants have a grace period - depending on their individual circumstances - before the relevant loading kicks in (if they are above 31 at the time they enrol).

More on the URL given above.

Peter

JackTheLad

We were just researching private health insurance today and got a bit confused by the term "lifetime health cover loading" and found this old posting.

So... bumped up to the top!

Mrs JTL

Wol

Just in case anyone hasn't seen the new scheme: Private cover in Oz acts rather as if it's a privately funded Government run health cover. The Government regulates the industry quite tightly, gives 30% rebate on the premiums against tax to encourage a high take-up and makes the various players honour each other's long term contracts. This means that you can compare funds and move from one to the other without going back to square one on waiting periods, starting age etc.

This "Lifetime health cover" means that if you begin with a fund when under 30 you pay premiums at a certain rate, but that every year of age above 30 when starting costs you another 2% on the premium - up to, I believe, a whacking 65% or thereabouts. Quite expensive!

The new regulations give new emigrants a break in that if you start cover within 12 months of being eligible for Medicare you are deemed to be age 30 and will be spared the loading every year. There are of course conditions as to continuity of cover etc.

It does work! But make sure you get some sort of written confirmation from your scheme that you are deemed 30 at start.

Another break we have found is that if you are with a UK scheme like BUPA some Oz funds will waive any waiting periods under certain conditions - ask about this "continuity of cover" when you join. We started with MBF and they told us that if we got a note from BUPA as to our UK scheme, benefits, cover etc we would be exempt from waiting periods.

Be conservative in the 12 month rule though - even the government doesn't know exactly when the clock starts ticking! You could be said to be "eligible for Medicare" the day your visa is granted, the day it is stamped, the day it is validated or the day you get the actual Medicare card. So don't leave getting cover until the last minute if you are over 30!

kirsty&al

Good Post Rog.

Another thing to remember that people over a certain salary get charged an extra 1% of Medicare Levy if you do not get private health insurance. Not sure what the limit is for a single person, but a couple is $100k plus $1k for each child (I think).

Muzzman

Hi, does anyone know if "eligible for medicare" is from the date visa granted or the date you apply for medicare once in the country. If it is the former we will have to start research into this soon!!!!
Thanks, Karen.

Wol

Back in May I phoned the appropriate Federal Government department for health (can't remember exactly which part) and spoke to someone quite high up about just this point.

They reitereated that it was 12 months from being eligible for medicare - but when I asked how that date is determined - they seemed phased by the question, and it was quite clear that they had made the legislation without considering that the "eligibility date" could be argued several quite different ways.

However, now that the funds at last seem to have got their minds around it, they do seem to use the date on your passport of entry for validation the actual start date.

Keep it in mind, though!

Ozbound7

I was told it was 12 months from getting the medicare card - so visa validation trips would not trigger the date. But when I contacted iselect (compare >2000 healthcare cos) they said there was actually over 1000 days in which to take it up! (because of some rule which I didn't understand)

Wol

That's definitely a new one on me!

ptlabs

Karen,

A person is generally eligible for medicare when *all* these conditions are met:

1. Is an Australian citizen or holder of a permanent resident visa of Australia or a holder of certain provisional visas (e.g. the provisional spouse visa, the extended eligibility (dependent child) visa, etc) or has lodged an application for certain permanent visas.
and
2. Is a resident of Australia (e.g. is living in Australia)

Hence, your medicare eligibility does not start until you arrive in Australia on a permanent visa. This means that if you are outside Australia at the time your visa was granted, you are not eligible for medicare until you make your first entry using that visa. If you are in Australia at the time your visa was granted, you are eligible for medicare from the date of grant.

Remember, you are eligible for medicare from the time you meet both conditions above. The fact that you do not apply for medicare does not change the date of eligibility. (i.e. date you get your medicare card is always going to be later than the date you are eligible for it.)

Peter

JAJ

But is someone on a validation trip actually 'living' in Australia?

Jeremy