robjcamb

Hi,

I've recently been offered a position in Sydney on a 457 temporary visa. The employer has told me (via their HR department or immigration lawyer; not sure) that I need to take out medical insurance for the 457 visa and send them evidence of this.

As I don't see me moving before April/May time, I'd rather not pay for this until the point it would actually become useful.

As I understand the situation, under the current rules, as there are reciprocal healthcare arrangements with the UK, for the 457 visa I do not 'need' health insurance, but it is recommended. Therefore, a valid response to them would be that from a legal standpoint, evidence of British citizenship is sufficient and that any insurance cover is at my discretion. Right or wrong?

Should I be wrong and insurance is required, I presume I don't 'need' this until I arrive in Australia. Would evidence of insurance need to be provided during the application process, or only if there was some auditing at a later date?

Thanks for any advice anyone has,

Rob

Bermudashorts

You are correct, to satisfy the visa requirements the reciprocal health agreement between UK and Australia is sufficient.

Taking out additional health cover is then something you can look into arranging once you are over.

robjcamb

Thanks,

Just doing a little more research:

http://www.immi.gov.au/skilled/457-h...isa-holder.htm

This suggests that as a UK citizen, under reciprocal agreements:

That would suggest that having insurance either privately or medicare is still required. Eligibility for reciprocal cover is insufficient for visa grant, and evidence of insurance would be required to cover the period until you were in the country to register for medicare.

Now, an interesting question is whether my travel insurance would be valid for visa grant/transitory period, or whether a month's local insurance would be needed to cover the requirements.

Nothing's ever simple :-)

Anyone else been in the same situation?

docmitra

Hi!

My partner and I were on a 457 visa when we moved to Australia; in our experience:

1. Your citizenship would suffice as proof of your eligibility for Medicare; however, citizenship alone does not entitle you to it. You need to register yourself at a Medicare Centre once you arrive in Sydney and get a Medicare number. Only then are you able to access Medicare services. Human Resource department clerks are sometimes unable to think logically and require definite proof, in the form of a Medicare card, which you will not have until you arrive here and register.

2. Many insurance companies will allow you to apply now and have the cover start at a later date; that way you do not pay for insurance till you need it but you will have all the paperwork to satisfy your employer.

3. It is important to have private health cover if your income is beyond certain thresholds. If you don't, the Australian Tax Office will charge you a penalty surcharge of 1.5% over and above the 1% Medicare levy that everyone else pays. If you can show that you have had private cover for the whole year, this amount will be returned to you. You can get more info on this at http://ato.gov.au/individuals/conten...t/00215173.htm

4. Be careful in choosing your private health cover as many Australian funds will offer temporary residents a level of cover that is equivalent to Medicare benefits. That is of no use to us as we get those benefits anyway.

All the best!

robjcamb

Thanks for the information docmitra; very useful. So it sounds like I'd at the very least need to purchase 'acceptable' cover before sending in the visa application. Then its a personal decision after registering for Medicare as to whether or not to continue with private cover.

I'd be liable for the 1.5% surcharge, so we can effectively subtract that proportion of income from the cost of any policy, and private cover starts to send more attractive

docmitra

You're welcome Rob; glad to be of assistance.
As a doctor in Australia, I should also tell you that Medicare in Australis is nowhere near as comprehensive as the NHS. Dentistry is not covered at all and you get limited benefits for Ophthalmology, Physiotherapy and other ancilliary treatments. In addition, many Emergency Departments in Australia are attached to private hospitals, which means that although you will be covered for your A&E visit, you could be waiting for a bed for days in the A&E if you require admission and do not have private cover. Reciprocal Medicare covers clinically emergent treatment only, so, for example, you can get an operation if you have a gall bladder infection but not if you need your gall bladder out because of pain due to stones.

All these are things to keep in mind when deciding whether or not to have private cover and to choose cover if you decide to have it.

In our first year here, we got worldwide health cover from Allianz (arranged from the UK)n that cost us GBP 1400 for the two of us. It was a good level of cover but claiming was always delayed as they questioned every claim but paid in the end. BUPA offers similar packages; their Aussie partner is HBA. HBF, MBF and Medibank are some of the other popular Aussie insurers. If you choose an Aussie insurer, bear in mind that your entitlement to the 30% discount offered to Aussies is limited to the Extras cover and not the hospital cover. You can only get the discount once you have a Medicare number.

I am terribly sorry if I am confusing you but that's the Australian health care system for you. Mail me or post a reply if you need any more information; I will be happy to help.

JAJ

I think it's 1.5% levy plus 1% surcharge.

If you are eligible for Medicare (even on reciprocal basis) you are liable for the levy, if not, you are exempt.

SOTR

Hi,

I've been granted a subclass 457 visa... I arrive in australia next week. I'm still in the process of sorting out my own private cover, that was recommended to me by my employer. However, should I take out some travel insurance for the first couple of weeks of my stay in Australia, as technically I won't have been paid yet?

I'm a little confused about whether I'm covered at a minimal level, or not, through just having been granted a 457 visa.

JAJ

Reciprocal Medicare covers emergency conditions only so you should have private medical cover. Why on earth is your employer not looking after this?

JAJ

Not sufficient as reciprocal Medicare eligibility is not based on nationality. A common myth.

SOTR

I'm quite confused by all this to be honest. My work offers a scheme through which I can sign up to private health insurance... although I'm not sure whether I should, as it takes a big chunk out of my pay packet. Further, I earn less than $73,000 p/a, so I'm assuming I'm NOT liable to pay the medicare levy?

This page: http://www.medicareaustralia.gov.au/...isitors/uk.jsp also appears to indicate that by registering with medicare I'll be pretty well covered for most eventualities... apart from: "Medical services not covered by Medicare
Medicare will not cover:

medicines not subsidised under the Pharmaceutical Benefits Scheme
dental work and allied health services
treatment arranged before your visit to Australia
accommodation and medical treatment in a private hospital
accommodation and medical treatment as a private patient in a public hospital. "

I wouldn't be paying for private medical insurance back in the UK, so what is the point in paying the extra out here?

If I need to, I'm quite happy to take out the medical insurance my work offers.... however, I don't really see the point in spending the extra money! Could someone clarify things for me?

SOTR

Bump...

corfu

Hi

I have pulled out this thread, trying to search for an answer but we are still both miffed

Basic info for you: 457 Visas, company sponsored, due in Sydney December 2010.

The company have just directed us to the migration agent to facilitate the visa, we have sent all appropriate documentation requested apart from the health insurance.

As part of the employment agreement my OH company have requested that we obtain premium level Health Insurance via IMAN, to be activated before our entry, the cost will be deducted from pre-tax salary


The agent advised that we need live insurance such as travel insurance for approx 2 months to be attached the visa application.

I e-mailed explaining it seemed strange to have travel insurance for 2 months whilst I am in the UK, and costly. We asked if we could provide proof of the IMAN insurance which we would activate prior to our arrival.

THEIR RESPONSE WAS:
We confirm as UK citizens you and your family are eligible for Medicare
based on a reciprocal agreement between Australia and the UK, further
information can be found at the following link:
http://www.medicareaustralia.gov.au/...isitors/uk.jsp

We confirm health insurance from IMAN will meet the immigration department
requirement should you choose to purchase this in lieu of travel insurance.

Travel insurance will be sufficient for the immigration department to
finalise your Subclass 457 Visa application and Medicare enrolment will be
sufficient to comply with condition 8501 on your visa (subject to grant).

We note in order for your Subclass 457 Visa to be finalised the immigration
department will require evidence of current health insurance (ie not post
dated to commence in several months time), or travel insurance.

Should you have any further questions do not hesitate to contact us.

Sorry, am I missing something, which ever way you read it, we must take out insurance 6 weeks prior to departure, are we being stupid????

Is this just a flaw in the system, please anyway one with experience of this please enlighten us before we go crazy

Thanks

JAJ

This is wrong. As a general rule, reciprocal Medicare agreements refer to residents of treaty countries, not citizens.

JAJ

Your employer should be paying because as you will not be an Australian citizen or permanent resident (or NZ citizen) you are only entitled to a limited form of Medicare and therefore will be worse off than your Australian co-workers.

Health insurance may cost you a lot more as you will not be eligible for full Medicare and you won't be entitled to any insurance rebates.

Eligibility for even a limited form of Medicare makes you liable to pay the Medicare levy of 1.5%. You may or may not have to pay the additional 1% surcharge depending on your income and insurance arrangements.

Bottom line in all of this - your employer appears to be expecting you to accept less healthcare cover than local employees. It might be legal, but you may wish to consider whether you want to go back and renegotiate this (also depends on whether you're willing to walk away from the job).

Although - if employer isn't prepared to sponsor you for a permanent visa, you should seriously consider whether you want to make the move.