DunRoaminTheUK

Hi.

We found out today that our little boys "dull ear" is going to cost us $1,200 to put right with an operation to insert grommets. This is because we do not have private medical and use Medicare. We opted to use the private surgeon in a public hospital ("intermediate hospital" apparently) as this will cost less than having the entire process taking place under an entirely private "umbrella" and is still quicker than waiting to have it done via Medicare.

Anyway, my real question is if we decide to take out private medical insurance will we be hit with the annually increasing surcharge regardless of which private insurer we use, as I am over 31 and mf wife is 31 next month? We've been here 1 year as of 15th July so the government incentive to take up private medical has now lapsed?

Does anyone have a rough idea as to how much this procedure (approx.) would have cost with private medical insurance in place?

Gees, this place is expensive!

Cheers.

NickyC

My understanding is that you'll pay a small age loading (2% for each year you're over 30) on your annual premium because you're over 30 and not in the 'grace' period for new migrants. However, this age loading does not increase each year (even though the premiums themselves may rise with cost of living etc) - you will always pay the same % extra.

This assumes that you keep a continuous cover. If you leave the private fund and then join again 10 years later you'd be up for a greater age loading.

DunRoaminTheUK

I guess that's not too bad? If it were costing us $150 per month for two adults and a two year old that means it only going to cost $3 more per month.

It costs me that to go 19 minutes down the line to Brisbane Central (almost).

The only pain in the proverbial is that it doesn't cover pre-diagnosed conditions.

Thanks.

chrispy

What is the period of grace you have when you migrate over, we have been here 2 and a half months so probably need to get it sorted..

Cheers

Chris

DunRoaminTheUK

Hi.

It's 12 months from the date of first being eligible for Medicare cover.

NickyC

No, it's not too bad if you're only a few years over 30, though the difference can be considerable if you try to join up for the first time when you're a lot older. If you were in your 50s you'd be paying 40% more than the next bloke .

That's why they added this age loading - loads of people used to just use Medicare when they were young and then joined a private fund when they got old and sick. Not fair on those people who'd been in the system and paid their premiums for years - they were subsidising these late joiners.

DunRoaminTheUK

Oh crap. I misunderstood. I'm...3...3....3....37, as if that wasn't bad enough on it's own.

The good news is that it seems that the loading only applies to my share of the premium and only to the part that covers hospital cover.

The good news is that my wife will be OK as she turns 31 next month and has until July 2008 to get private cover before being hit with the surcharge.

This is what the Medicare website had to say:

Prior to April 2004, health funds had to apply a loading to a member's premiums if they did not have hospital cover by the time they turned 31 years of age. Under the current LHC provisions, people who do not have private hospital cover on the 1st of July following their 31st birthday must pay more for their premiums. They must pay a 2% loading on top of a base rate single member premium (or their share of a couple or family premium) for each year they remain without hospital cover.

Example
Bob turned 31 on 1 May 2004. If he takes out cover by 1 July 2004, he will pay the base rate premium. If he takes out cover on 2 July 2004, he will pay a 2% loading. If Bob further delays taking out hospital cover, for every subsequent year ending 30 June, he will pay an additional 2% loading.

The maximum loading is 70%. The loading applies only to hospital cover, not to extras.

worzel

And if you stick with it for 10 years the loading is removed, thanks to a recent change.

DunRoaminTheUK

I'll be dead by then (to all intents and purposes)...

worzel

But if you are not, you may be calling on that private cover to keep you going. Look at the Queen Mum - she was on the balcony waving away for 20 years after she should have been 6 feet under

chrispy

Don't think she had to worry about private health cover.. could have just sold a few trinkets or a corgi or a race horse..

DunRoaminTheUK

If we were to take out private medical cover would we be exempt from paying any of the Medicare levy or will we still be expected to pay part/all of the levy?

If we don't have to pay the levy then that would be great as it should only be slightly more expensive to go private. This leads me on to my next question which is what is a rough guide as to how much the insurers pay for (when private) and what you are expected to pay, say for (a) dental, (b) a major operation and (c) consultations?

Cheers again...

worzel

Nearly everyone pays the 1%. But if you earn over $50K ($100K as a couple) and don't have private cover you have to pay an additional 1%. We have a very high level of cover and the 1% isn't that much short of the premiums so it makes sense to have it.